Ottawa is lavishing federal workers with hefty bonuses even if they fail to meet their performance targets.
The Liberals have dished out more than $406 million in bonuses for federal departments and Crown corporations during the fiscal year 2023-24, according to government records obtained by the Canadian Taxpayers Federation.
“Bonuses are for when you do a good job; they shouldn’t be handed out like participation ribbons,” said Franco Terrazzano, Federal Director of the Canadian Taxpayers Federation. “Taxpayers can’t afford to bankroll big bonus cheques each and every year for highly-paid government executives.”
Federal departments and agencies awarded over $210.8 million in taxpayer-funded bonuses in 2023-24. Crown corporations added another $195.6 million in bonuses, bringing the total to $406.4 million for the year.
These bonuses have pushed the total amount awarded to bureaucrats in federal departments since 2015 to more than $1.5 billion.
The records reveal that nearly 90% of federal government executives receive a yearly bonus.
Despite giving bonuses to almost everyone, the Parliamentary Budget Officer said that “less than 50% of (performance) targets are consistently met within the same year.”
“In the real world, when you fail to do your job you might get a pink slip, not a big bonus cheque,” said Terrazzano. “The government needs to stop handing out these taxpayer-funded bonuses to failing government executives.”
Among Crown corporations, the Business Development Bank of Canada issued the most bonuses, totalling more than $59 million, giving bonuses to 100% of the company’s executives. Canada Mortgage and Housing Corporation and the CBC also gave out bonuses to 100% of their executives for over $27 million and $14.9 million, respectively.
The 2023 bonuses received by CMHC employees have pushed the total to $102 million since the beginning of 2020. These bonuses come despite True North previously reporting that housing affordability in Canada reached an all-time low in April.
While every single executive at CBC got a bonus, and 87% of its workforce received a pay raise during the 2023-24 fiscal year, the state broadcaster laid off hundreds of employees at the end of the year.
Between 2015 and 2022, taxpayers were billed $156 million in bonuses and raises for CBC staff.
Export Development Canada issued over $35 million in bonuses to 95% of its executives, while the fifth Crown corporation with the highest total bonuses only awarded bonuses to 73% of its executives, this being VIA Rail for a total of nearly $11.4 million.
VIA Rail’s revenues increased by 29% in 2023, reaching $430.7 million; however, operating losses grew to $381.1 million. The intercity passenger rail service was awarded $773 million in taxpayer subsidies in 2023. Despite the bonuses, only 59% of trains arrived on time.
The Department of Justice topped federal departments and agencies in bonus distribution, with over $18.9 million awarded to its executives, with 97% of them receiving a bonus.
The Canada Revenue Agency also awarded bonuses to 97% of its executives, totalling just over $18 million. Ahead of both in percentage of bonuses distributed to executives was Employment & Social Development Canada, which awarded over $12.9 million to 98% of its executives.
Regarding the value of total bonuses, the two trailing agencies were Global Affairs Canada and Superintendent of Financial Institutions, at nearly $12.5 million each, and 94% and 90% of executives got bonuses, respectively.
Despite the performance of Crown corporations and federal departments dwindling, the number of bonuses awarded to federal departments continues to skyrocket. Total bonuses have increased yearly since 2015, when they totalled just over $137 million.
“Welcome to Ottawa, where failure is rewarded with taxpayer-funded bonuses,” said Terrazzano.
