CEO cites 'contractual obligation owing to eligible employees'
The Canadian Broadcasting Corporation (CBC) disbursed over $18 million in bonuses this year, even as it eliminated over 200 vacant positions and laid off 141 workers.
Documents obtained through access-to-information requests revealed that CBC/Radio-Canada awarded bonuses to 1,194 employees during the 2023-24 fiscal year, Global News reported.
Among the recipients were 45 executives, who collectively received more than $3.3 million in bonuses. On average, these executives each received over $73,000.
Over $10.4 million was paid out to 631 managers, while an additional $4.6 million was distributed to 518 other employees. The decision to grant these bonuses was approved by the CBC’s board of directors in June, despite the public broadcaster’s financial struggles and the pressure from members of Parliament, who had been inquiring about the bonus amounts since December.
In December, CBC/Radio-Canada announced plans to reduce its workforce as part of efforts to balance its budget. This led to the layoff of 141 employees and the elimination of 205 vacant positions within the organization.
The bonuses were described by the CBC as "performance pay," a component of some employees’ total compensation packages, which are structured to include payouts when specific company objectives are achieved.
CBC bonuses ‘contractual obligations’
This situation has sparked controversy, particularly since the bonuses were distributed during a period of financial austerity for the CBC. CBC’s board admitted the optics of awarding significant bonuses while simultaneously cutting jobs are not good, and has launched a review of its compensation structures, The Canadian Press (CP) noted.
CBC has maintained that the bonuses are a standard part of employee contracts and are tied to the achievement of predetermined goals, but this justification has done little to quell the criticism surrounding the payouts.
CBC CEO Catherine Tait was quoted in May as saying the continued reference to the payouts as “bonuses” by MPs gives her "great frustration".
"While the term 'bonuses' has been used to describe performance pay, it is in fact a contractual obligation owing to eligible employees," said CBC spokesman Leon Mar in a CP report.