Bank of Canada staff got $26.7 million in bonuses and raises

Bank of Canada employees received $26.7 million in bonuses and pay increases in 2022.

According to a government-issued document made public through an information access request, Canadian Taxpayers Federation, Bank of Canada staff will receive $20.2 million in bonuses and $6.5 million in salary increases in 2022, a 13 percent increase over 2021. More than 80 percent of staff received a bonus or raise in 2022, as sought by the Bank of Canada. Restrain personal consumption by raising interest rates.

Franco Terrazzano, director general of the Canadian Taxpayers Federation, told CTVNews.ca, “Central bankers should not receive bonuses if Canadians cannot afford groceries, gasoline and housing.” “Inflation was at its highest level in 40 years, and central bankers were not eligible for bonuses.”

Bank of Canada bonuses average over $11,000 and average salary increases over $3,400.

The number of Bank of Canada employees earning over $100,000 annually has more than doubled between 2015 and 2022, according to records obtained by the Taxpayers Federation of Canada. In 2022, 1,095 of the 2,250 Bank of Canada employees earned six-figure salaries, which was close to $13. % increase compared to 2021.

To combat inflation, the bank began raising interest rates in March 2022, from a pandemic low of 0.25% to 4.25% by the end of the year. By 2022, Consumer and Business Bankruptcies The consumer price index, the main inflation indicator, rose, but 6.8% increase, Highest level in 40 years.

On July 12, the Bank of Canada’s policy rate hit a 22-year high of 5%. The consumer price index is 3.4% in May, according to Statistics Canada. The Bank of Canada has the following missions: keep inflation near 2%.

“The Bank of Canada has failed to do its job of keeping inflation as low as 2%,” Terrazzano said. “Most organizations don’t give bonuses to employees who have had their worst years in the last 40 years.”

In an email to CTVNews.ca, a Bank of Canada spokeswoman confirmed the authenticity of the documents provided by Terrazzano’s organization.

“Our independent board of directors oversees the bank’s management, including personnel policy,” Bank of Canada spokesman Paul Badercher told CTVNews.ca. “Like many employers in the financial industry, we hire and retain in a highly competitive environment.”

Badercher explained that bonuses include “risk pay” for meeting job expectations and “performance pay” for exceeding expectations.

“The majority of our employees met expectations and therefore received a risk-based pay, while about a quarter of our employees received a performance-based pay,” Badercher said.

The Taxpayers Federation of Canada is a non-profit taxpayer advocacy organization. As Canada’s central bank, the Bank of Canada’s responsibilities include conducting monetary policy and issuing banknotes.

Mr David McDonald Canadian Center for Policy Alternatives, a progressive think tank focused on social, economic and environmental justice. McDonald doesn’t like bonuses in general, but says Bank of Canada payments aren’t like millions of dollars paid to private financial institutions.

“The bonuses are actually a lot less than in the private sector,” McDonald told CTVNews.ca. “Normally, Bank of Canada bonuses and big bank bonuses are paid out in good and bad times.”

Professor of Finance, University of Guelph Nikola Gradojevic The Bank of Canada’s recent decision states: increase in money supply And rising interest rates are hitting many Canadians hard.

“Salary increases and bonuses in the public sector are normal and expected,” Gradjevich said. “Given the past and current behavior of the Bank of Canada, it is on ethical grounds that Bank of Canada employees should not receive excessive bonuses and should only receive normal salary increments received by other government employees. I might argue.”

McDonald said the Bank of Canada’s bonuses and pay increases are likely to be below inflation.

“Thus, like many workers in 2022, it’s likely that employees will have received pay cuts when inflation is taken into account,” McDonald said. “The whole point of raising rates is to make people’s lives tighter and make people have less money to spend in the economy.”

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