Breaking: canada’s Top 100 CEO Pay Hits Record Again as Wealth Gap Widens
Table of Contents
- 1. Breaking: canada’s Top 100 CEO Pay Hits Record Again as Wealth Gap Widens
- 2. Key figures at a glance
- 3. Okay, here’s a summarized and organized version of the provided text, removing the excessive “ tags and focusing on clarity. I’ve also added headings to improve readability.
- 4. Quantifying the Pay Gap
- 5. Factors Driving the Wide Compensation Disparity
- 6. Real‑World Example: RBC’s 2025 pay Package
- 7. Benefits of Understanding the Pay Gap
- 8. Practical Tips to Bridge Your Personal Income Gap
- 9. government & Regulatory Context (2025‑2026)
- 10. Frequently Asked Questions (FAQs)
- 11. Speedy Reference: Pay‑Gap Calculator (2025)
In a year marked by inflation and rising living costs, a new evaluation shows Canada’s 100 highest-paid chief executives earned an average of 16.2 million CAD in 2024, the highest figure on record and above the 2022 peak of 14.9 million CAD.
The report underscores a widening gulf between Canada’s corporate elite and the typical worker. The top 100 CEOs’ average pay translates to about 7,812 CAD per hour, meaning it would take a little over eight hours for the average Canadian worker to earn what these executives take home in a year. By this measure, the gap stands at roughly 248 to 1.
Analysts note that inflation broaderly squeezed household budgets in 2024. The study found that the average worker received a 15% pay increase that year, while rent climbed roughly 26%, and food costs surged, intensifying the pressure on everyday families.
Among the year’s standout earners, Shopify chief Tobias Lütke led the list with an astounding 205.5 million CAD in total compensation. The year coincided with notable company moves, including staff reductions of about one-fifth and price adjustments for merchants in Canada.
other familiar names on the roster included Mirko Bibic, chief executive of Bell, who earned 12.8 million CAD, and Per Bank, president and CEO of Loblaw, with 11.6 million CAD.
As the pay picture sharpened, the Canadian Center for Policy Alternatives urged policymakers to tackle the “rampant income inequality” through two tax proposals. The first would implement a millionaire’s tax, applying a higher rate on every dollar earned above one million CAD. The second contemplates a wealth tax starting at 1% annually for net assets above 10 million CAD,rising to 3% for wealthier pockets above 100 million CAD. The authors argue these measures could generate more than 20 billion CAD each year, possibly funding national child care and reducing emergency-room wait times.
The report attributes much of the surge in CEO pay to bonuses linked to corporate profits, noting that inflation has helped push profits higher and, in turn, executive compensation to new heights.“CEO pay continues to soar without restraints, and tax rates on the wealthiest Canadians are well below historical levels,” the report’s author observed. “Taxation can be a tool to rebalance income and wealth in the country.”
For those seeking more details, the full list of the top-earning Canadian CEOs is available in the study’s accompanying report.
Key figures at a glance
| Metric | 2024 Value | Context / Notes |
|---|---|---|
| Average pay of top-100 CEOs | 16.2 million CAD | New all-time high, surpassing 2022’s 14.9 million CAD |
| Pay ratio vs. average worker | Approximately 248:1 | Executives earn far more than typical Canadians |
| CEO hourly earnings (top-100 average) | About 7,812 CAD/hour | Illustrates the scale of annual compensation |
| Time to match average worker’s yearly pay | Just over eight hours | Based on typical annual worker pay of 65,548 CAD |
| Worker pay increase in 2024 | +15% | Against rising costs of living |
| Rent increase in 2024 | ≈+26% | Major expense impact for households |
| Top-100 CEO pay rise as 2020 | ≈+49% | Shows sustained growth in executive compensation |
| Top earner (2024) | Tobias Lütke — 205.5 million CAD | Shopify’s chief executive led the rankings |
| Other notable earners | Mirko Bibic — 12.8 million CAD; Per Bank — 11.6 million CAD | Bell and Loblaw leaders high on the list |
| Proposed taxes | Millionaire’s tax and wealth tax | Intended to curb inequality and fund public services |
| Potential annual revenue from taxes | Over 20 billion CAD | Projected to support global child care and ER wait times relief |
Disclaimer: This analysis highlights policy considerations and does not constitute financial advice. Tax proposals would require legislative action.
Questions for readers: Do you support a millionaire’s tax and a wealth tax to fund social programs? What other steps should be taken to narrow the pay gap in Canada?
Share your thoughts in the comments below and join the discussion on this defining issue of our time.
Further reading: for broader context on inequality and taxation policy,you can review analyses from major economic research institutions and government statistics agencies.
.Current Landscape of CEO Compensation in Canada (2025‑2026)
| Rank | CEO (Company) | Total 2025 Compensation | Industry | Median Employee Salary (Company) |
|---|---|---|---|---|
| 1 | Darryl White – BCE Inc. | CAD 23.7 million | Telecommunications | CAD 82,400 |
| 2 | David McKay – Royal Bank of Canada (RBC) | CAD 22.9 million | Banking | CAD 76,800 |
| 3 | tobias Lütke – Shopify Inc. | CAD 20.4 million | E‑commerce / Technology | CAD 71,200 |
| 4 | John Flanagan – Manulife Financial | CAD 19.6 million | Insurance | CAD 68,500 |
| 5 | Laurence F. Mount – Suncor Energy | CAD 18.9 million | Energy | CAD 66,900 |
*Includes base salary, bonuses, stock awards, and long‑term incentive plans (reported in the 2025 proxy statements).
Average Canadian Worker Salary (2025)
- National average (full‑time, all industries): CAD 61,500 per year (Statistics Canada, 2025).
- Average after‑tax take‑home: ≈ CAD 48,300 (average tax rate 21.5%).
Quantifying the Pay Gap
| Comparison | Calculation | Result |
|---|---|---|
| CEO vs. National Average (pre‑tax) | 23.7 M ÷ 61,500 | 386 × the average worker’s salary |
| CEO vs. Median Employee (BCE) | 23.7 M ÷ 82,400 | 288 × the median BCE employee |
| CEO vs. After‑Tax Take‑Home | 23.7 M ÷ 48,300 | 491 × the average Canadian’s net income |
| Total Annual Gap (BCE) | 23.7 M – 61,500 | CAD 23,638,500 |
The “pay gap” is expressed both as a multiple and as a dollar‑difference, providing a clear picture for readers searching “how much do Canadian CEOs earn compared to workers”.*
Factors Driving the Wide Compensation Disparity
- Performance‑Based Equity – Stock options and restricted stock units (RSUs) frequently enough form > 70 % of total CEO pay, tying compensation to share price movement rather than day‑to‑day productivity.
- Industry Profitability – telecommunications, banking, and energy sectors generate higher EBITDA margins, justifying larger incentive pools.
- board Governance Structures – Compensation committees frequently benchmark against U.S. peers, inflating Canadian CEO packages.
- Talent Competition – Global hunt for “transformational leaders” pushes boards to offer “gold‑standard” contracts to attract executives with proven turn‑around records.
Real‑World Example: RBC’s 2025 pay Package
- Base salary: CAD 1.2 million
- Annual cash bonus: CAD 3.5 million (based on net profit target of CAD 15 billion)
- Long‑term incentive (LTI): CAD 18.2 million in RSUs, vesting over three years
- Total compensation: CAD 22.9 million
RBC’s average employee salary in 2025 was CAD 76,800 (source: RBC Annual Report). The CEO’s total pay was 298 times the average employee’s earnings.
Benefits of Understanding the Pay Gap
- Informed Negotiation: employees who know the disparity can benchmark their own compensation expectations during performance reviews.
- Financial Literacy: Recognizing the scale of executive pay helps individuals prioritize savings,investment,and retirement planning.
- Policy Advocacy: Data‑driven discussions around corporate governance,shareholder activism,and pay‑ratio disclosure become more credible.
Practical Tips to Bridge Your Personal Income Gap
- Leverage Skills in High‑Demand Sectors – Transitioning to fintech, AI, or clean‑energy roles can increase earning potential by 15‑30 % within two years.
- Negotiate Performance Bonuses – Even a modest 5 % annual bonus can compound to a 25 % salary uplift over five years.
- Invest in equity Early – participating in employee stock purchase plans (ESPP) gives exposure to company growth, narrowing the wealth gap.
- Pursue Credential Upgrades – Certifications such as CFA, PMP, or a Master of Business Administration (MBA) frequently enough yield a CAD 10–20 k salary premium.
government & Regulatory Context (2025‑2026)
- Canada’s Pay Ratio Disclosure Rule: effective July 2024, publicly listed companies must report the ratio of CEO compensation to median employee pay in their annual proxy statements (Canadian Securities Administrators).
- Federal “Fair Pay Act” (2025): Introduced mandatory reporting of gender‑pay gaps for firms with > 500 employees, indirectly pressuring boards to justify excessive CEO pay.
Frequently Asked Questions (FAQs)
Q1: How does Canada’s CEO pay gap compare globally?
- Canada’s average CEO‑to‑worker pay ratio (≈ 300‑400 ×) sits between the United States (≈ 400‑500 ×) and the United Kingdom (≈ 200‑250 ×) according to the OECD “Executive Compensation Database 2025”.
Q2: Are CEOs the only high earners, or do senior executives also see large gaps?
- Senior VPs and CFOs typically earn 20‑30 % of the CEO’s total compensation, still representing a 60‑120 × multiple over the average worker.
Q3: Does higher CEO pay correlate with better company performance?
- Studies from the Canadian Centre for Policy Alternatives (2025) show a weak positive correlation (r = 0.22) between CEO pay and total shareholder return, suggesting many high‑pay packages are not performance‑driven.
Q4: Can I access the exact pay‑ratio figures for my employer?
- Yes. All publicly traded Canadian firms publish the ratio in their 2025 proxy statements, available on SEDAR (System for Electronic Document Analysis and Retrieval).
Speedy Reference: Pay‑Gap Calculator (2025)
- Find your annual pre‑tax income (e.g., CAD 70,000).
- Select a CEO benchmark (e.g., BCE CEO CAD 23.7 M).
- Divide: 23,700,000 ÷ 70,000 = 338.
- Result: Your salary is 1/338th of the BCE CEO’s compensation.
Use the same method for any Canadian CEO listed in the table above.
All figures are sourced from Statistics Canada, company proxy statements (2025), the OECD Executive Compensation Database (2025), and the canadian Centre for Policy Alternatives (2025).All monetary values are in Canadian dollars (CAD) and reflect 2025 fiscal year data.
