Friday, June 22, 2012

Bonuses for bureaucrats - a phony scheme

Fine editorial from the best daily in British Columbia:

CLBC bonuses call for inquiry, Times Colonist, June 22, 2012
"...Last fall, as reports of CLBC's mismanagement and cover-ups mounted, the bonus program became controversial.

"Cadieux ordered the agency's board to end it.

"And the CLBC board did just that - by increasing executive salaries by virtually the same amount as the maximum possible bonus. The 61 executives who shared the chance to earn about $300,000 in performance bonuses were quietly given raises worth the same amount.

"That highlights several issues. Most obviously, it suggests the bonus plan was a sham, that managers' goals were easily attained. Otherwise, there was no legitimate reason to raise the salaries by the full amount. (emphasis added)

"That in turn raises questions about the legitimacy of bonus plans across government and Crown corporations. The auditor general, for example, reported last year that B.C. Hydro executives were paid large bonuses based on inaccurate reports of its financial performance..."

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2 comments:

  1. There were and as far as I know still merit pay schemes for executive grade employees in the Federal line public service. By that I mean regular departments of the Federal Govt, not some special agencies or Crown Corps. These merit pay packages were awarded to the people collecting them BY the people collecting them. They amounted to something on the order of another 15 or 20 thousand on base pay of, say, 110 thousand. All rank and file employees regarded these schemes as a complete and total joke.

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  2. "pay packages were awarded to the people collecting them BY the people collecting them."

    Not just with bonuses either. That is the driving force behind rapidly rising salaries of people near the top of the pyramid. A agrees that B,C & D should be paid more and then, because B,C & D earn more, A must be given a raise.

    If I'm honest, I admit to playing the game myself during my career.

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