The leaders of Canada’s top five banks may rate amongst the highest paid CEOs in the country, according to a report released last week, but one B.C. advisor suggests the value they add overrules the cost to employ them.
“We tend to look at the numbers as big numbers, and they are big numbers, but you have to attempt to quantify the value that the executive is providing,” says investment advisor Luke Kratz. “I think it’s a necessary cost that shareholders must bear and I think there’s some extraordinary (talent) across Canada’s top firms.”
The report, All in a Day’s Work: CEO Pay in Canada, by the Canadian Centre for Policy Alternatives, provides a snapshot of the 240 publicly listed Canadian corporations on the TSX index, ranking the top 100 highest paid CEOs in the country and determining their average total compensation. One key finding is that these CEOs make an average Canadian salary in just two days of work. (Continued on Page 2)