In testimony before the House of Commons heritage committee on Jan. 30, CBC boss Catherine Tait indicated she hoped the CBC-Radio-Canada board would recommend she get performance-based pay.Adrian Wyld/The Canadian Press
CBC boss Catherine Tait declined to rule out awarding executive bonuses if performance criteria are met, though she told MPs all options – such as freezing executive bonuses – remain on the table.
The chief executive officer and president of CBC-Radio-Canada prompted an outcry in December when, on the day the broadcaster announced 800 job cuts to address a $125-million shortfall, she told its newscast that it was too early to say if executive bonuses would be cut.
In testimony before the House of Commons heritage committee Tuesday, Ms. Tait also indicated she hoped the CBC-Radio-Canada board would recommend she get performance-based pay.
But she said this was not “predictable” and depended on a number of factors – not just how she performs but on “a pool of people” including the Prime Minister’s Office and deputy ministers.
“I can say what the board might recommend, and what I hope they would recommend based on my performance, but it isn’t really at the end of the day, even their decision. It’s the government’s decision,” she said.
Ms. Tait faced a barrage of questions from MPs from all parties about whether she would be recommending that bonuses are awarded this year – while hundreds of employees face losing their jobs.
Ms. Tait said it was a decision the board would make based on set criteria, but she faced questioning about whether as CEO she would in fact be the one making the recommendations.
MPs asked whether she may be prepared to freeze bonuses or reduce them for employees earning more than $200,000 a year.
She said the decision would be made at the end of the fiscal year at the end of March, based on whether a number of performance indicators have been met. Ms. Tait indicated that the public broadcaster is on track to meet many of the criteria, though not all of them.
Responding to questioning from Conservative heritage critic Rachael Thomas on what recommendation she planned to make to the board on bonuses, Ms. Tait said: “If we achieve the results of the current fiscal year, I will recommend that 1,140 unaffiliated, non-unionized employees receive their fair pay, their performance pay,” she said.
Last year, the broadcaster awarded around $15-million in executive bonuses. She said the corporation had an annual payroll of $950-million. And executive performance pay was proportionately “an extremely small number.” She added: “We need to keep our talented managers. It’s not just journalists.”
Ms. Tait said CBC-Radio-Canada is one of the worst-funded public broadcasters in the world, and its public funding allocation has not increased in 30 years, even though it has hugely expanded the services it offers.
She said the broadcaster did a huge amount with its budget, delivering services in English, French and Indigenous languages, in communities across Canada, on digital platforms as well as television and radio, and through podcasts. She said she was committed to reporting in the regions, including small towns, though not all currently had a CBC reporter, and the broadcaster had in the past shifted resources to protect jobs.
But Ms. Tait faced sharp questioning from Ms. Thomas and Conservative House Leader Andrew Scheer about how the public broadcaster could justify performance pay when viewing figures are declining despite receiving $1.4-billion in government funding.
Liberal MP Michael Coteau said bonuses were usually given out “when things are good” but many Canadians were facing challenges, and cutting bonuses could help save jobs.
“Tone is an important thing during these challenging times and when Canadians see $16-million going out and bonuses, it’s hard to stomach,” he said.
He asked Ms. Tait whether as CEO she would consider recommending to the board of directors that the CBC look again at its bonus structure.
“I certainly will consider all scenarios,” she said. “However, we have a program in place. First of all, these are not frivolous awards that are given at Christmas time. This is performance pay.”
Ms. Tait indicated that the proposed 800 job cuts were not set in stone and would be reassessed based on the broadcaster’s financial situation.