Fed’s bank ordered to reveal secret bonus payments to execs

MPs have being trying to get their hands on the information for a year.

“There are millions of dollars that have been paid to executives and to others who are no longer with the organization,” said New Democrat MP Taylor Bachrach (Skeena-Bulkley Valley, B.C.), sponsor of the disclosure motion.

“I think the Canadian public deserves to know where those dollars went, and how many of those dollars were performance bonuses for performance that didn’t exist.”

Cabinet tabled a report in the Commons last May 26 saying the board approved a schedule of lavish bonuses at the taxpayer-owned bank in Toronto.

Former CEO Pierre Lavallée was paid a $600,000 salary with eligibility for bonuses up to 185 per cent, a total $1.1 million.

Lavallée abruptly resigned last April 3. The Bank – which employs 80 people – is currently on its third CEO in a year, and its second chair of the board.

Bachrach told the transport committee there has been an “utter failure of the Canada Infrastructure Bank to deliver on any of its promises” while posting a bonus schedule for executives.

Bachrach’s motion compelled the bank to disclose “all documents detailing the bonus policies and payment of bonuses to executives and the board of directors since the Bank’s inception” in 2017.

“Most organizations, if you provide performance bonuses, will have some sort of policies guiding those bonuses, and I think it would be very interesting to know what those policies are,” said Bachrach.

“And secondly, any documents detailing whether or not performance bonuses were provided to the outgoing personnel involved at the Canada Infrastructure Bank.

“The people who are no longer with the organization left with compensation. We should know why, because frankly I don’t think the performance of the Bank to date has warranted bonuses. I think many Canadians would share that view.”

The Bank has never divulged actual pay to individual executives but in its last annual report said it paid $3.4 million to management and $3.8 million in “termination benefits.”

Annie Ropar, chief financial officer for the Bank, told the Commons finance committee June 22 bonuses were confidential.

“Unfortunately I cannot comment on a specific individual’s payments or terms,” testified Ropar.

“That is subject to confidentiality obviously of their employment agreement.”

“Well, that’s unacceptable,” said Conservative MP Pierre Poilievre (Carleton, Ont.).

“I can tell you every member of this committee has their compensation disclosed. The chairman has compensation, all of us as MPs have different compensation. Everybody knows what we’re paid.”

MPs are paid $182,600 a year. Committee chairs are paid $195,100 while parliamentary secretaries are paid $200,400.

Dave Naylor is the News Editor of the Western Standard

dnaylor@westernstandardonline.com

Twitter.com/nobby7694