During a recent session, Members of Parliament raised concerns about spending at the Canada Infrastructure Bank (CIB), particularly regarding the significant portion of operating costs that went towards salary bonuses last year.
According to a report by Blacklock’s Reporter, bank executives received bonuses totaling over $1.2 million in 2023, with senior managers each receiving about $204,000. This information was presented in response to an Inquiry of Ministry in the Commons.
An additional $6.9 million in bonuses was distributed among 105 bank employees, amounting to around $66,000 per employee. Conservative MP Dan Muys pointed out that the combined bonuses of $8.1 million make up roughly 18 percent of the bank’s total operating costs.
Addressing bank CEO Ehren Cory during his testimony before the Commons Transport, Infrastructure and Communities Committee on April 9, Mr. Muys questioned the justifiability of such a high percentage of operating costs being allocated to bonuses.
Mr. Cory, who earns approximately $600,000 annually, defended the bonuses by stating that the bank’s compensation structure is rigorously benchmarked against the private sector. He emphasized that employees are motivated by the bank’s public sector mission, and their compensation needs to remain competitive.
Despite Mr. Muys expressing concerns about the excessive amount allocated to bonuses, Mr. Cory stood by the bank’s approach, citing the importance of competitiveness in attracting talent.
The Canada Infrastructure Bank was established in 2017 with $35 billion in financing to facilitate the development of new public works through private investment. However, a 2022 report from the transport committee recommended abolishing the bank due to inefficiencies and transparency issues.
Conservative MP Leslyn Lewis raised questions about the bank’s expenditure on salaries and overhead compared to actual infrastructure projects, prompting discussions about the necessity of such hefty bonuses and salaries.
Mr. Cory assured the committee that every taxpayer dollar is handled with utmost seriousness, emphasizing that staff costs contribute to investments in new infrastructure and environmental benefits.
The committee also reviewed the bank’s financial loss of approximately $900,000 on the Lake Erie Connector project, which was halted due to escalating costs. The spending on consultants and legal fees for the project raised concerns about the effective utilization of taxpayer funds.
Despite challenges faced by the project, Mr. Cory expressed optimism about its potential revival under new ownership, highlighting the importance of persistence in the infrastructure development process.
In his testimony, Mr. Cory highlighted the CIB’s successful investments totaling nearly $13 billion in various projects across Canada, underscoring the need for continued infrastructure development supported by public-private partnerships.
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