Quebec’s auditor-general Guylaine Leclerc recently introduced the findings of her team’s regular 2019-2020 report looking into the higher points of Crown corporations in Canada. The information it features proved being controversial, as it established that individuals on senior positions within the structure of corporations to the likes of Loto-Quebec and Societe des Alcools du Quebec receive millions in bonuses.
The reasoning for higher compensation and remuneration was that the Crown corporations have to remain competitive to the private sector of the province. This was a discovery that intrigued the people working on the report and Mrs. Leclerc could not hire her surprise by this piece of information. For her, the impressive payments are unnecessary, as Loto-Quebec should not compete with private companies in the area. In response to this discovery, she said better regulation is needed.
Severance Packages Reach CA$3.5M in Two Years
When it comes to the higher positions within the structure of Crown corporations, the annual report striving to shed more light onto the field is able to provide essential information about the status quo. Regular practices that remain hidden from the public were recently brought to light and the discoveries left many officials puzzled.
As it turns out, monopolies might have bigger power in their hands than previously considered and they opt to work with it in ways that could rank them among the private sector companies. This includes stellar wages, bonuses happening on a regular basis and exceeding the expectations of even the team working on the report.
The severance packages coming in certain situations were referred to as ‘golden parachutes’ for a reason, as they reached CA$3.5 million in the past couple of years. Some of the bonuses paid out reach up to CA$50,000 and such expenses remain a private matter of the Crown corporation.
Mrs. Leclerc pointed out that this has become possible as a result of the insufficient monitoring of Crown corporations that also prefer to maintain their transparency at a certain level. They rarely issue financial information about their employees, as they have the right to maintain such details private.
Bonuses Could Jump to CA$50,000
The government does not have direct oversight, enabling this to happen. What should be taken into account and has clearly been highlighted by the report is that Crown corporations are essentially monopolies, which exempts them from the healthy competition with rival companies. This is what differentiates Loto-Quebec from companies operating privately and there should not be a comparison between the two fields.
However, there was a comparison with other Crown corporations. As it was revealed by the annual report on the subject, Loto Quebec, offers its Vice-Presidents twice the wage Musée national des beaux-arts du Québec offers its Vice-Presidents as a remuneration. This is being done in order to maintain leading positions and individuals within the structure of the Crown corporation.
It should be taken into account that relocation to the private sector rarely happens in reality. Upon the report issuing, Loto-Quebec confirmed that the upcoming months are going to see the implementation of all recommendations listed in the report, as this would guarantee fair work conditions and full transparency. This includes wages increases and reasoning behind them. The Crown corporation is linked to a class-action lawsuit that was recently turned down.
