The top executives of Quebec’s largest companies are projected to earn a staggering 236 times more than the average annual salary by 2026. Just two days into the new year, these CEOs had already raked in what an average Quebec worker makes in 12 months, as reported by the Quebec Observatory of Inequalities (OQI).
As of Friday morning, the 21 highest-paid CEOs in Quebec had each pocketed $62,795 in a mere 8.8 hours, hitting this benchmark by 9:47 a.m., according to OQI data.
To kick off the new year, OQI and the Canadian Centre for Policy Alternatives (CCPA) have released an analysis of the 100 top-earning business leaders in Canada, 21 of whom helm Quebec-based companies.
This study delves into the compensation packages of CEOs from firms listed on the Toronto Stock Exchange.
Comparatively, last year at this time, the wealthiest CEOs in Quebec took a bit longer to surpass the average worker’s salary, achieving this feat in 10.1 hours, notes the OQI.
Geoffroy Boucher, an economist at the Observatory, attributes this widening income gap to the escalating income inequality since 2020.
Boucher explains, “The wealthiest individuals, the top 20% of the population, have seen a significant rise in income, while other income groups have experienced marginal growth.”
Looking ahead to 2026, OQI predicts that the 21 Quebec executives, with only one female member, will command an average compensation of $14.8 million, equivalent to 236 times the average annual salary, encompassing salaries and bonuses like cash incentives and stock options.
In 2024, the top 100 Canadian CEOs each earned an average of $16.2 million, reveals the CCPA report.
Boucher highlights the evolution in CEO compensation composition over the years, with a shift from base salaries to diverse bonus structures, partly driven by tax advantages. He emphasizes the need for discussions on tax fairness in Quebec and Canada.
While Boucher stresses that the analysis does not judge CEO remuneration, which is determined by shareholders and boards, it serves to underscore the widening economic disparity.
He points out, “There is a disproportionate concentration of wealth among a minority, leaving a significant portion of the population struggling to cover basic needs.”
Moreover, findings from OQI and CCPA indicate that Canadian companies paid out record-high dividends in 2023, totaling $341.5 billion, a 431% surge over 20 years, overshadowing the modest increase in employee wages compared to dividends.
Boucher questions whether employees receive fair compensation relative to their contributions to these companies’ financial success.
The data compiled by CCPA and OQI are sourced from companies’ proxy filings for shareholder meetings.
