The Canadian Broadcasting Corporation announced Wednesday it will eliminate its controversial bonus system and instead increase base salaries for affected employees after months of public criticism.
The decision follows backlash over the public broadcaster paying $18.4 million in bonuses during the 2023-24 fiscal year while simultaneously cutting hundreds of jobs.
Read: CBC Approves Staff Bonuses Despite Job Cuts And Criticism From Parliament
The CBC’s board of directors said in a statement it will discontinue what it calls “performance pay” and will adjust base salaries to compensate non-unionized staff, including senior executives.
The board acknowledged views that performance-based pay is inappropriate during times of financial constraints and workforce reductions, according to a statement released with the announcement.
The move followed the release of an independent review by Mercer Canada of the broadcaster’s compensation structure. That review recommended ensuring total compensation remains at the midpoint of the market if performance-based incentives were eliminated.
CBC came under fire after documents obtained through access to information laws revealed the Crown corporation paid bonuses to 1,194 employees after laying off 141 workers and eliminating 205 vacant positions.
The bonus payments included $3.3 million distributed to 45 executives, averaging about $73,000 per executive — more than the median Canadian family income. Another $10.4 million went to 631 managers, with the remaining $4.6 million paid to 518 other employees.
Former CBC president Catherine Tait faced questioning at two parliamentary committee hearings over the bonuses. Tait was summoned to the House of Commons heritage committee to answer for the cuts and was interrogated over whether she would accept a bonus herself.
The Conservatives criticized the bonuses harshly, particularly as the public broadcaster had announced in December 2023 that it would cut approximately 600 jobs to help balance its budget.
In its recent announcement, CBC/Radio-Canada said it wants to focus more on longer-term public service goals, including improving its value to citizens and strengthening Canadian culture. The statement indicated CBC/Radio-Canada will still set objectives and measure performance, but performance metrics will no longer determine part of individual compensation.
Related: CBC Gets Another Payday As Parliament Remains Suspended
The public broadcaster has said the compensation restructuring will only affect non-unionized employees, including senior executives.
Prime Minister Mark Carney promised a $150-million funding increase to CBC during his April election campaign, aimed at protecting Canada’s cultural identity.
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