(A brief update on this post – This November 28th, the governing Liberals and the opposition Conservative Party voted against this bill to cap CEO salaries in the public sector, defeating it by a wide margin of votes.)
This Release from the Office of Ontario NDP Leader Andrea Horwath
Queen’s Park – New Democrat Leader Andrea Horwath introduced a Private Member’s Bill this November 7th that if passed, would cap the salaries of Ontario’s highest-paid public employees to ensure that scarce public dollars are spent on front line services not lavish paychecks.
“When a public sector CEO takes home more in a year than the average family earns in two decades, people feel like their money isn’t being respected,” Horwath said. “I’m hoping Ontario can move forward with a simple plan: put a hard cap on the salaries of public sector executives at twice the salary of the Premier.”
The new legislation would cap publicly-paid executive salaries at double the salary of Ontario’s Premier. The Premier’s current salary is $209,000. According to the 2012 Sunshine List, over 180 executives made a salary more than two times as high as the Premier, and 25 executives made more than three times the Premier’s salary.
The bill would apply to all executives in the public sector from the Ontario Public Service to crown agencies like Hydro One and OPG, as well as hospitals and universities.
Horwath said the NDP legislation is needed because soaring executive compensation has gotten worse under the Liberal government. She noted that Tom Mitchell, the head of OPG, makes $1.7 million while families are paying some of the highest hydro bills in the country. The CEO of Sunnybrook in Toronto is making over $760,000. In his day job as CEO of St. Joseph’s Health System, the government-appointed supervisor of the Niagara Health system brought in $2,803,326.92 over four years. Meanwhile the government is laying nurses off and arguing that the healthcare system doesn’t have the funds to keep community hospitals open.
“Until the Liberals get serious about putting a hard cap on public sector CEO salaries, Ontarians can expect to see the pay packets of public executives continue to grow at the expense of public services,” Horwath said.
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