Canada’s top 100 highest-paid CEOs earned an average of $13.2 million in 2023, a sum derived from salaries, bonuses, and other forms of compensation, according to a report by the Canadian Centre for Policy Alternatives (CCPA). Though this figure marks the third-highest year for CEO pay since 2007, it reflects a decline following record-breaking sums in 2021 and 2022. Senior economist David Macdonald attributed the decrease to reduced profits in 2023 and increased wages for workers due to recent inflation.
By 10:54 a.m. on January 2, the average CEO had accumulated an income equal to the annual earnings of a Canadian worker, $62,661. The income gap between CEOs and average workers notably widened, with executives earning 210 times more than typical employees in 2023, compared to 104 times in 1998.
Patrick Dovigi of GFL Environmental Inc. topped the list, receiving $68.5 million in total compensation. He was followed by Joshua Kobza of Restaurant Brands International Inc. with $39.1 million, and R.M. Kruger of Suncor Energy Inc. at $36.8 million. CEO compensation largely stemmed from non-salary sources such as share and option-based awards, with direct salaries forming a diminishing part of the total.
The CCPA highlighted a shift in CEO pay structures, driven partly by policy changes. In 2024, Canada’s capital gains tax inclusion rate rose above 66% for gains exceeding $250,000. In 2021, a federal cap was implemented on stock option tax deductions at $200,000 annually. These measures contributed to a reduced reliance on stock options in CEO compensation, favoring direct share awards instead.
Despite the stark CEO-worker pay disparity, Macdonald acknowledged some positive trends: workers’ wages saw significant increases in 2023, partially offsetting inflation, and the few women on the top CEO list earned more on average than male counterparts named Scott or Michael. The report suggests policy solutions, such as a “wealth tax” for Canadians with net worths over $10 million and higher top marginal tax rates, to address the pay gap. These measures could generate substantial revenue and help level the economic playing field.
