Canadian CEOs significantly out-earned staff in 2023, report finds

A recent report found that Canada’s 100 highest-paid CEOs earned $13.2 million on average in 2023 — around 210 times more than the regular worker.

The Canadian Centre for Policy Alternatives (CCPA) said it was the third-largest year for CEO pay since the organization began tracking the data in 2007.

Key findings

• Patrick Dovigi of GFL Environmental was the highest-paid Canadian CEO in 2023. His total compensation was $68.5 million.
• More than three-quarters of the CEOs on the list got the job from within the company — working at their firms for an average of 21 years.
• Only three of the 100 CEOs on the list were female.
• Salaries weren’t generally the main source of CEO pay. Other forms of compensation (i.e. share-based awards and option-based awards) led the charge.
• Some CEOs on the list, including Tobi Lütke of Shopify and Murray Edwards of Canadian Natural Resources Ltd., receive a salary of just a dollar.
• The average cash bonus for the highest-paid CEOs in 2023 was $2.3 million.

David Macdonald, the report’s author and senior economist at the CCPA, noted that workers’ pay rose substantially in 2023 — catching up to inflation.

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For most non-unionized workers in Canada, receiving more money is a welcome change to the terms of their employment.

However, it’s important to understand your rights in the event that your boss decides to cut your pay.

Can my employer reduce my wages?

While employers in Canada can make minor changes to the terms of an individual’s employment, substantial adjustments would require consent from the worker.

This applies to non-unionized individuals working full-time, part-time, or hourly in Ontario, Alberta, and British Columbia.

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about changes to your job on an episode of the Employment Law Show.

If your salary or pay has been significantly reduced without your consent, there is a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to quit your job and pursue full severance pay.

ADDITIONAL RESOURCES
• Can an employer lower your wages in Ontario?
• Pay cuts in Alberta: Employee rights
• Can employers in B.C. cut a worker’s pay?

However, you shouldn’t resign until an experienced employment lawyer at Samfiru Tumarkin LLP confirms that you have been constructively dismissed.

How is severance pay calculated?

Severance for non-unionized employees in Canada can be as much as 24 months’ pay.

The amount of compensation you are entitled to is calculated using several factors, including:

To figure out how much you could be owed, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance entitlements.

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, contact us.

We can determine if you were wrongfully dismissed and help you secure the compensation you deserve.

SEE ALSO
• Severance pay for provincially regulated employees
• Rights to severance for federally regulated staff
• Are severance packages different during mass layoffs?
• Severance entitlements in a recession

I’m being pressured to sign a new employment contract, what should I do?

If the employment contract you initially signed doesn’t give your employer the ability to adjust your pay, you could be asked to accept a new agreement that does give the company permission to make changes.

In the event that you are provided with a new employment contract, have it reviewed by one of our legal professionals before signing anything. You don’t have to accept it on the spot or a few days after receiving it.

In many cases, these agreements away key protections that would otherwise be available to non-unionized employees in Canada.

SEE ALSO
• Starting a new job? Here’s how an employment contract could limit your rights
• ’60 days or more’: Is it an enforceable termination clause?
• Employment Law Show: 5 things to know about employment contracts

Validating a new agreement

In order for a new employment contract to be legally valid, your employer must provide you with an additional “benefit”.

Potential benefits could include extra vacation days or more flexibility working remotely.

If your company didn’t include an additional benefit in the new agreement, or you aren’t sure that one has been provided, don’t accept anything until you speak with our firm.

Can I be punished for refusing a reduction in pay?

If you reject a substantial reduction to your wages, your employer can’t punish you by making negative changes to your job.

In the event that significant adjustments are made to the terms of your employment after objecting to a pay cut, contact an experienced employment lawyer at Samfiru Tumarkin LLP.

We can determine if you were the victim of a workplace reprisal and assess your legal options.

LEARN MORE
• Reprisals at work in Ontario: Your rights
• What to know about workplace reprisals in Alberta
• Workplace reprisals in B.C.: Employee rights

I’m being pressuring to resign after refusing a pay cut, what should I do?

No matter how upset your employer is that you rejected a pay cut, the company can’t pressure or force you to resign.

If your boss is encouraging you to step down, document their attempts. Keep any letters, emails, or text messages that show how the company is pressuring you to quit your job.

Once you have gathered all of the relevant documents, don’t resign before seeking legal counsel. We can tell you if you have grounds for a constructive dismissal claim.

LEARN MORE
• Can you rescind a resignation in Ontario?
• Employment Law Show: Facts about forced resignations
• Employment Law Show: How to handle a bad boss

Can I be fired for refusing a reduction in pay?

The short answer is yes. Employers in Canada can fire non-unionized workers if they reject a pay cut.

This is known as a termination without cause. You can be let go for any reason, as long as:

• You’re provided full severance pay
• The reasons for your dismissal aren’t discriminatory

However, it’s very unlikely that your boss would be able to fire you for cause in this situation — meaning no severance package or access to Employment Insurance (EI) benefits.

If this happened to you, reach out to our firm. We can determine if this type of dismissal was appropriate in your situation and advise you of potential next steps if it wasn’t.

LEARN MORE
• Do I have to look for a new job after getting fired?
• Can I get my job back if I am fired?
• Employment Law Show: Facts about the termination process

Workplace issue? Contact us

Since 2007, the experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals resolve their workplace issues.

Whether you’re in Ontario, Alberta, or B.C., our lawyers can review your situation, enforce your rights, and ensure that you receive the compensation you deserve.

Disclaimer: The materials provided in this article are for general informational purposes only and DO NOT constitute legal advice. For advice specific to your situation, please consult a legal representative at Samfiru Tumarkin LLP.