BC Ferries officials say BC Ferries executive compensation is not compliant with the law

A statement will be released as the ferry authorities gain more power over BC Ferries’ day-to-day operations.

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BC Ferries officials say the compensation packages earned by BC Ferries CEO Mark Collins and his eight vice presidents are above standards and do not comply with coastal ferry laws.

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The shocking statement, based on a report released in January and commissioned by the authorities, shows how BC Ferries’ executive compensation compares to six large public sector organizations. Confirming. The state government is also seeking to strengthen authorities’ control over BC Ferries operations through the Coastal Ferries Amendment Act (Bill 7).

The report, entitled “Coordinating Executive Compensation between BC Ferries and BC Public Sector,” focuses on the executive packages of BC Hydro, ICBC, WorkSafeBC, Provincial Health Services Authority, BC Lottery Corporation, and BC Transit’s CEO and Vice President. Did.

The author of the report was tasked with recommending compensation to company executives based on this comparison. Authorities are responsible for setting executive compensation through the Coastal Ferry Act.

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The six organizations compared were BC Hydro, British Columbia Insurance Company, WorkSafeBC, Provincial Health Services Authority, BC Lottery Corporation, and BC Transit.

According to the report, BC Ferries CEO Mark Collins earned a base salary of $ 535,000. The eight Collins Vice Presidents earned a base salary of $ 355,000 to $ 452,000 annually.

Collins’ base salary was significantly higher than BC Hydro’s boss, Chris Orilly. According to the report, he earned $ 416,000 a year on his base salary. However, if you add the perks, O’Riley will earn about $ 570,000, according to BC Hydro.

According to the report, BC Ferries earns 85% less than BC Hydro, has 90% less assets, has less workforce, and is less complex.

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The report did not mention the value of the entire Collins package. However, according to BC Ferries 2019 Executive Compensation Plan, the total compensation package for the CEO cannot exceed $ 611,000. This includes benefits such as pensions, car allowances, health, disability and life insurance, in addition to basic salary.

The report recommends that BC Ferries’ CEO earns a base salary of $ 406,000 ($ 129,000 less than his current salary), with a combined salary and benefits of less than $ 500,000. The two highest-paying vice presidents recommended reducing the base salary by $ 105,000 each to $ 347,000 a year.

“This report was commissioned to provide the authorities with guidance on compensation, especially in the light of the financial challenges of BC Ferries due to the pandemic,” the official statement said.

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“We have examined equivalent public sector organizations and have shown that BC Ferries’ compensation plans are in excess of standards and do not comply with coastal ferry laws.”

BC Ferries and Eric McNeely, chairman of the Marine Trade Union, said he hopes Bill 7 will be used to reduce executive compensation for the organization.

“It has the potential to address excess ferry executive compensation and increase transparency across BC Ferries,” said McNeely.

“From the 7th floor of the Atrium Executive in downtown British Columbia, we could direct funding to deck plates and worksites throughout British Columbia, increasing reliability and resilience within the ferry system.”

BC Ferries, once a royal corporation, is now considered a quasi-government and its only shareholder is the BC Ferries authorities. BC Ferries is a contract service provider and is operated by government subsidies.

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The organization has 4,000 full-time employees and operates 35 vessels out of 47 terminals.

Under the new bill, the Board of Authority can vote to instruct BC Ferries to act on any operational decision that the Authority desires.

BC Ferries introduced the question to the BC Ferries Bureau.

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BC Ferries officials say BC Ferries executive compensation is not compliant with the law

Source link BC Ferries officials say BC Ferries executive compensation is not compliant with the law

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