BC Ferries has acted on provincial government demands make changes to how bonuses are awarded to the company's three top executives. Here is a look at the system being replaced:
Bonus system being replaced
- The bonus system, or “at-risk compensation”, has in recent years been made up of a short-term incentive plan, which still exists, and a long-term incentive plan, which was discontinued effective April 1, 2012.
- The B.C. Ferry Authority board of directors has final approval over executive compensation at the company, including bonuses, as recommended by the BC Ferries board of directors.
- Short-term incentives are linked to achievements in line with the company’s operating goals, up to a maximum.
- Formula is as follows: base salary x 50% of the target percentage of base salary for the total short-term incentive plan award x percentage achievement of the set of objectives.
- In addition to the three executives, about 480 other BC Ferries employees participate in the short-term incentive plan.
What's next?
- A new “salary holdback” plan will tie payment of a portion of executives’ salaries to financial and business targets.
- It is in effect retroactive to April 2013.
- The same approach will apply to senior managers effective April 2014.
Read the full story.
Scroll down for more on the bonuses given to BC Ferries' three top executives.
At-risk compensation
All other compensation
Mike Corrigan
President and Chief Executive Officer
"Ultimately responsible for managing the company"
Rob Clarke
Executive Vice President and Chief Financial Officer
Responsible for all financial affairs, and manages supply chain and strategic planning
Glen N. Schwartz
Executive Vice President, Human Resources & Corporate Development
Responsibilities include crewing of vessels, industrial relations, business development and marketing
With a report from Ian Bailey
Source: Statement of Executive Compensation, Aug. 16, 2013
Source: Statement of Executive Compensation, Aug. 16, 2013