Tuesday, June 19, 2012

Needing leadership, we get greed

Province pundit Michael Smyth slammed provincial court judges - bellyachers of the bench, he called them - for demanding richer packages of salaries and benefits. Maybe Smyth is grinding an old axe; maybe he prefers targets that don't answer back or don't buy him lunch.

Regardless, I'd like to introduce the columnist to a group in his own neighbourhood; a group that enjoys a free pass from media.

It is the British Columbia Investment Management Corporation (bcIMC), headed by Doug Pearce, the highest paid civil servant in BC with 2011 earnings of $1.063 million.

bcIMC manages $87 billion of investments for the province, mostly pension funds. Managing is a somewhat imprecise word here because bcIMC pays outside investment professionals and consultants more than $100 million for investment services. The company's overhead expenses, not including direct investment costs, amounted to $38 million in 2011. $29 million was for salaries and benefits, which means the average employee at bcIMC earns $166,000 a year.

The Washington State Investment Board fulfills a similar role in the neighbouring state. WSIB manages $62 billion of investments and its operating expenses, not including direct investment costs, amounted to $11 million. $9.5 million was for salaries and benefits.

In other words, the bcIMC manages funds worth 40% more than WSIB but incurs administrative costs 345% higher than the American agency. Much of that difference is caused by vastly different executive remuneration. Here is a comparison of the five top paid management people in 2011:

In previous articles, I referenced numerous examples of senior BC bureaucrats enjoying salary increases far above typical percentages garnered by average people in this province. No department or agency compares with bcIMC when it comes to lining the pockets of senior staff.

Between 2007 and 2011, a period where most public servants made very modest gains, these increases were awarded senior executives of bcIMC:
     Doug Pearce, CEO 78%
     Lincoln Webb, VP 233%
     Bryan Thomson, VP 60%
     Chuck Swanson, VP 69.0%

One of the common claims is that higher salaries are necessary to attract and retain staff. The above comparison suggests that is mere rationalization rooted in avarice. If retaining staff is such a key element of setting remuneration, why did bcIMC pay VP Chuck Swanson a 69% increase between 2007 and 2011, including 9% in 2011, his year of retirement.

One contributor to excessive wage costs at bcIMC is the large and hungry population of Vice Presidents. I suspect there are more VPs than office clerks. Here is the current list:

     Bryan Thomson, VP, Equity Investments
     Paul Flanagan, VP, Fixed Income
     Dean Atkins, VP, Mortgages
     Lincoln Webb, VP, Private Placements
     Mary Garden, VP, Realo Estate
     Daryl Jones, VP, Research and Risk Measurement
     Lynn Hannah, VP, Consulting and Client Services
     David Woodward, VP, Finance and Operations
     Carol Iverson, VP Human Resources
     Robert des Trois Maisons, VP, Legal Affairs and General Counsel
     Gina Pala, VP, Information Technology
     Shauna Lukaitis, VP, Trade Management and Compliance

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  1. "Please, sir, I want some more."

    Keep up the good fight Norman Farrell.

  2. An incestuous band of free loaders with good political connections are sucking the lifeblood out of this province and Premier Photo-op and her band of foot-pads will do nothing. This is free enterprise as championed by the lesser Campbell on radio dead-dog 98.

  3. This info is scandelous.. wish the MSM would grow a pair and do some of the digging that you have taken on for the people of this Province. Not likely.. it appears they've also become foot soldiers for this band of robbers.

  4. Campbell spread his sick evil, all through this province. Christy didn't have sense enough, to correct what she could. Instead she carried on with Campbell's lies, thefts, deceit and corruption. Campbell's theft and sale of the BCR, is not going away. Christy and the Liberal Ministers, were right there, and all backed Campbell to the hilt. I guess they think Campbell is worth losing, their political careers over.

  5. Intellectual TerroristJune 19, 2012 at 11:14 AM

    Higher salaries doesn't necessarily attract the "best and the brightest", it usually attracts the "lazy and the greediest".

    These thieves have a special place in Hell reserved for them.

  6. More Lib raises today, Community Living:


  7. The figures speak for themselves.
    What an evil government the BC "Liberals" are.

  8. Thank you Norm ,you are on fire lately.

  9. How did our group do compared to the Washington group. Is our investment strategy so much better they deserve more money?

  10. Here is a link to BCIMC's inventory list of investments:


  11. This infection of Bad Bankers, INvestment brokers and Hedge Fund Managers has infiltrated BC, Canada and North America. The culture is what is we are at war with here. Swooping in like vultures looking for carcasses only wanting the meat to be fed for the short term. The question now to ask is WTF happened to being a Canadian citizen? and When did it change to not being important anymore?

  12. Great article Norman!

  13. Great info, Norm! Unfortunately there are people who like to step on others just to reach the top - Thanks for a share!



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