‘MONEY WELL SPENT’: Committee demands federal bank CEO justify $8M in bonuses

The CEO of Canada Infrastructure Bank (CIB) was interrogated by the Commons Transport Committee as to why bonuses cost taxpayers $8 million,18% of the bank’s operating budget. An Inquiry Of Ministry tabled in the House of Commons at the request of Conservative MP Leslyn Lewis shows 100% of bank executives received a total of $1,224,457, the equivalent of $204,000 per senior manager, according to Blacklock’s Reporter. Parliament launched the CIB in 2017 with $35 billion in taxpayer financing on a mandate to build new public works by attracting private investment. MPs questioned the CEO on Thursday why bonuses ate up a fifth of the bank’s operating revenues last year.“The bank has really hit its stride,” CEO Ehren Cory told the committee. Cory’s annual salary is $600,000. “We deliver value for taxpayers by making loans that get paid back with interest,” he added.Bonuses for the CEO are paid up to 185% of salary, according to CIB records tabled in parliament in 2020.The Inquiry said extra bonuses worth an additional $6,884,835 were paid to 105 Bank employees. Conservative MP Dan Muys calculated the combined bonuses totaled $8.1 million or “18% of your operating costs.”“Do you think that’s justifiable?” asked Muys. “Our compensation structure is benchmarked rigorously to the private sector,” replied Cory.“What was the total amount paid out in bonuses at the Canada Infrastructure Bank?” asked Lewis. "CIB has spent more on salaries and overhead than on actual infrastructure projects.”“Why should Canadians who are struggling with daily living expenses not be concerned about these hefty bonuses and salaries that your non-profitable bank is dishing out?”“We take every taxpayer dollar extremely seriously,” replied CEO Cory. “Our staff costs are all in pursuit of making investments that both build new infrastructure and deliver the public benefits of greenhouse gas reductions.”The transport committee is reviewing the Bank’s $899,318 loss on the Lake Erie Connector, a failed climate project. Costs represented payments to lawyers and consultants on a now-suspended proposal to run a 117 km underwater electricity transmission line from Haldimand County, ON to Erie County, PA, in the US. “It has been sidelined due to an affordability gap,” said CEO Cory. “The project was stuck due to high costs that would have had a significant impact on Ontario ratepayers.”“Where did the $900,000 of taxpayers’ money go?” asked Lewis. “We hired consultants, technical advisors who understand electricity markets,” replied Cory.“As in any large transaction, I think that’s money well spent.”“Okay, ‘money well spent,’” said Lewis. “The money is of no value now because the project is cancelled.”The Commons transport committee in a 2022 report entitled The Canada Infrastructure Bank recommended cabinet disband it. “We still want to abolish it,” said NDP Taylor Bachrach at the time.