Image Credits: CBC News
OTTAWA, August 12, 2024 — The Canadian Broadcasting Corporation (CBC) is facing significant public backlash after it was revealed that the public broadcaster paid out over $18 million in bonuses this fiscal year, despite eliminating hundreds of jobs. The revelations have led to calls from some Canadians to defund the CBC, with critics arguing that the bonus payments show a blatant disregard for Canadian taxpayers.
Documents obtained through access-to-information requests by the Canadian Press revealed that CBC/Radio-Canada awarded bonuses to 1,194 employees during the 2023-24 fiscal year. Of this amount, more than $3.3 million was paid to 45 executives, averaging over $73,000 per executive, a figure that surpasses the median family income in Canada after taxes in 2022 .
This news comes just months after CBC announced in December 2023 that it would be laying off 600 employees as part of a cost-cutting measure. However, the actual number of layoffs was 141 employees, with an additional 205 vacant positions eliminated. Despite these cuts, the total bonus amount this year increased by $3.5 million compared to the previous fiscal year, when $14.9 million was distributed to 1,143 employees .
The Conservative Party was quick to condemn the bonuses, calling them “beyond insulting and frankly sickening.” Conservative MP and Opposition heritage critic Rachael Thomas described CBC as “not worth the cost” and reiterated the party’s commitment to defunding the broadcaster. Thomas also suggested turning the CBC headquarters into “beautiful homes for Canadian families” .
In response to the public outcry, CBC spokesman Leon Mar stated that the bonuses were part of a contractual obligation known as “performance pay” or “at-risk pay,” which is common across government departments, Crown corporations, and private companies. According to Mar, this pay structure is designed to ensure employees meet specific targets .
CBC President Catherine Tait has also defended the bonuses, although she acknowledged the negative optics of awarding such payments during a period of financial strain and workforce reductions. Tait has been called before the House of Commons heritage committee twice in the past year to address these issues. During a particularly tense appearance, Tait insisted that what critics were calling “bonuses” were, in fact, performance pay, and claimed that she had no control over whether she received such payments and is decided by the board of directors.
The CBC’s board of directors, which approved the bonuses in June, has since launched a comprehensive review of the corporation’s compensation regime. The review, conducted by a third-party human resources consulting firm, aims to ensure the fairness of the compensation packages and is expected to include recommendations based on best practices and market data from other Crown corporations and the media sector .
Despite the CBC’s defense, the controversy has ignited a fierce debate on social media, with many Canadians expressing their anger and frustration. Calls to shut down or defund the CBC have grown louder, with some arguing that the bonuses are a misuse of taxpayer money at a time when many Canadians are struggling with economic hardships .
The Liberal government, which oversees the CBC’s funding, has yet to make any formal announcements regarding the broadcaster’s future. However, Heritage Minister Pascale St-Onge has initiated a mandate review to examine the CBC’s governance, financing, and mission. In a statement, St-Onge’s office emphasized the need for rigorous management of public funds, while also noting the importance of a strong public broadcaster that connects Canadians from coast to coast .
As the CBC navigates this turbulent period, the broader conversation about its role, funding, and accountability to the Canadian public is likely to intensify.
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