The Bank of Canada is facing sharp criticism after it was revealed that the institution issued $23 million in bonuses to staff in 2023, as disclosed through access-to-information records obtained by the Canadian Taxpayers Federation (CTF). This latest figure brings the total bonuses awarded by the Bank since 2020 to $78 million.“When you absolutely fumble the ball trying to do your one and only job, you should probably get a pink slip, not a big fat bonus cheque,” said Franco Terrazzano, CTF Federal Director.In 2023, the bank's executives alone received $3.5 million in bonuses, while the remaining amount was distributed among lower-level staff. Overall, the total compensation for the bank’s 80 executives reached $32 million, averaging $400,000 per executive.The data detailing the bonuses over the past four years are as follows:. The Bank of Canada’s mandate is to maintain an inflation target of 2% within a control range of 1-3%. However, it has failed to meet this target in each of the past three years. Inflation rates were 3.4% in 2021, 6.8% in 2022 — a 40-year high according to Statistics Canada — and 3.9% in 2023.In November 2020, Bank of Canada Governor Tiff Macklem assured the federal finance committee that “inflation is projected to remain less than 2% into 2023.” Contrary to this projection, the Bank raised interest rates seven times in 2022 and three times in 2023, with the current policy interest rate standing at 5%. The next interest rate decision is expected on Wednesday.Acknowledging past missteps, Macklem admitted in 2022 that “we got some things wrong,” while a deputy governor conceded that the Bank “hasn’t managed to keep inflation at our target,” and suggested that central bankers “should be held accountable.”Terrazzano criticized the bonus distribution as a misstep in accountability: “Handing out big bonus cheques is an odd way to hold your organization accountable. Central bankers shouldn’t get bonuses when Canadians can’t afford groceries, gasoline or homes.”The federal government, in its Budget 2023, announced plans to work with Crown corporations to achieve spending reductions estimated at $1.3 billion over four years starting in 2024-25, with ongoing savings of $450 million.“At best, the Bank of Canada failed to keep a lid on rising inflation and, at worst, it drove inflation higher by printing hundreds of billions of dollars out of thin air,” said Terrazzano. “Finance Minister Chrystia Freeland should find savings by ending bonuses at failing Crown corporations like the Bank of Canada.”
The Bank of Canada is facing sharp criticism after it was revealed that the institution issued $23 million in bonuses to staff in 2023, as disclosed through access-to-information records obtained by the Canadian Taxpayers Federation (CTF). This latest figure brings the total bonuses awarded by the Bank since 2020 to $78 million.“When you absolutely fumble the ball trying to do your one and only job, you should probably get a pink slip, not a big fat bonus cheque,” said Franco Terrazzano, CTF Federal Director.In 2023, the bank's executives alone received $3.5 million in bonuses, while the remaining amount was distributed among lower-level staff. Overall, the total compensation for the bank’s 80 executives reached $32 million, averaging $400,000 per executive.The data detailing the bonuses over the past four years are as follows:. The Bank of Canada’s mandate is to maintain an inflation target of 2% within a control range of 1-3%. However, it has failed to meet this target in each of the past three years. Inflation rates were 3.4% in 2021, 6.8% in 2022 — a 40-year high according to Statistics Canada — and 3.9% in 2023.In November 2020, Bank of Canada Governor Tiff Macklem assured the federal finance committee that “inflation is projected to remain less than 2% into 2023.” Contrary to this projection, the Bank raised interest rates seven times in 2022 and three times in 2023, with the current policy interest rate standing at 5%. The next interest rate decision is expected on Wednesday.Acknowledging past missteps, Macklem admitted in 2022 that “we got some things wrong,” while a deputy governor conceded that the Bank “hasn’t managed to keep inflation at our target,” and suggested that central bankers “should be held accountable.”Terrazzano criticized the bonus distribution as a misstep in accountability: “Handing out big bonus cheques is an odd way to hold your organization accountable. Central bankers shouldn’t get bonuses when Canadians can’t afford groceries, gasoline or homes.”The federal government, in its Budget 2023, announced plans to work with Crown corporations to achieve spending reductions estimated at $1.3 billion over four years starting in 2024-25, with ongoing savings of $450 million.“At best, the Bank of Canada failed to keep a lid on rising inflation and, at worst, it drove inflation higher by printing hundreds of billions of dollars out of thin air,” said Terrazzano. “Finance Minister Chrystia Freeland should find savings by ending bonuses at failing Crown corporations like the Bank of Canada.”
