CBC executives are still in the running to receive millions in bonuses, despite the broadcaster’s plan to cut hundreds of jobs in its English and French services.
Catherine Tait, President and CEO of the CBC, informed the parliamentary committee of heritage yesterday that the decision on executive compensation, termed “performance pay,” will be made by the board of directors by the fiscal year-end on March 31, according to the National Post.
Last year, CBC/Radio-Canada allocated $14.9 million in compensation to over 1,100 individuals, based on individual and corporate performance, as stated by Marco Dubé, Chief Transformation Officer. Tait emphasized, “These are not frivolous awards given at Christmas time,” and considered the amount modest compared to the $950 million total payroll of the entire organization.
The process involves the management team presenting annual results to the board, which then decides on bonuses. “It’s not my decision whether I get a bonus or not,” Tait clarified to angry MPs.
Amidst a $125 million budget shortfall, the CBC announced plans to slash its workforce by roughly 10%, equating to 600 union and non-union positions and the elimination of 200 vacant roles.
The broadcaster also plans to cut its English and French programming budgets, including a $40 million reduction in independent production commissions and program acquisitions. Additionally, $25 million in discretionary cost reductions are anticipated, affecting areas like travel and marketing.
Tait, facing scrutiny from CBC chief correspondent Adrienne Arsenault in December, stated it was “too early to say” if executive bonuses would be suspended. Addressing MPs, she acknowledged the “uncertainty and worry” caused by the cuts, promising to minimize job and service impacts and adjust plans if the financial situation improves.
However, MPs across parties expressed dissatisfaction with Tait’s stance on executive compensation.
Liberal MP Michael Coteau found it difficult for Canadians to accept potential bonuses amid job cuts, stating, “Usually, bonuses happen when things are good… but things are not good.”
“I can understand people’s concerns,” Tait explained. “It’s an extremely small number and we need to keep our talented managers — it’s not just journalists, although we absolutely honour and support their work.”
Conservative MP Rachael Thomas criticized the timing of the layoff announcement at a time when the CBC’s audience is declining, saying, “Most Canadians don’t even see half of that in a bonus, not even a quarter of that in a year.”
Bloc MP Martin Champoux said the CBC should not have equal job cuts across English and French staff, when 60% of the most-watched shows were produced by Radio-Canada.
“You shouldn’t be giving executive bonuses if you can’t provide the services at the base level,” slammed NDP MP Peter Julian.
The CBC received $1.4 billion from taxpayers to start its fiscal year and it still can’t turn a profit. It’s facing a $125 million budget shortfall for 2024-25. Should the CBC continue to receive subsidies from Canadians to keep reporting the news?
