The board of B.C. Ferries has 30 days to figure out how to fix its unpopular bonus scheme for top executives, the province’s transportation minister says.
Todd Stone said he has told ferry corporation chairman Donald Hayes to report back within a month on ways to change the bonus structure, so it does not become a controversy that affects the corporation every year.
“We had a focused and direct discussion and it was very much about: How does he fix this in a go-forward basis,” Stone told the Times Colonist on Monday.
“[Hayes] absolutely acknowledged to me directly he and his board need to take action on this, and he’s committed to going back to his board and within 30 days taking action on it. I intend to hold him to account on that.”
B.C. Ferries has been hammered by critics since it revealed last month that it had hiked bonuses and salaries for its top executives, at a time when the financially troubled corporation is facing route reductions and relying on increased taxpayer subsidies to stay afloat.
The corporation’s two executive vice-presidents saw their bonuses almost double in the last year, to as high as $133,711, as part of $500,000 annual compensation packages.
Stone blasted the move, saying it sends the wrong message during times of fiscal restraint.
He said the 30-day ultimatum to the ferries board was his idea.
“I’m not going to let this slip,” Stone said. “He knows we expect to hear back from him.”
The government won’t roll back the bonuses this year, nor will it tear up executive contracts or renege on signed compensation deals, Stone said. He wouldn’t specify what fixes government wants to see from B.C. Ferries, but did say other government Crown corporations have eliminated bonuses in favour of hold-back payments.
“There’s a number of different things they could consider,” Stone said.
Hayes refused an interview Monday. He defended the bonus hikes at last month’s B.C. Ferries annual general meeting, saying they were linked to $26 million achieved in internal cost savings.
Critics have said the bonuses are particularly galling because B.C. Ferries achieved a $15-million surplus last year only due to $21.5 million in extra government subsidies.
“The fix is quite simple. You can amend the Coastal Ferries Act,” said NDP critic Claire Trevena, whose party has called for legislated changes to the bonus structure.
“You don’t have to go to the board. [Stone] has the ultimate responsibility as the minister of transportation.”
