Over the last few years, Saskatchewan’s executive compensation scene has undergone significant changes, especially in its Crown corporations. The changes mirror national trends in Canada, which are driven by regulatory reforms, economic performance, and changing corporate governance practices.

Reduction in Crown Executive Compensation

In April 2021, the Saskatchewan Government made sweeping cuts in executive remuneration for its Crown corporations. This move was made to realign executive compensation with public expectations, particularly against the backdrop of economic downturn due to the COVID-19 pandemic. The main measures comprised:

Salary Holdback Reduction: Reduction in eligibility for salary holdbacks—the incentive-based component of executives’ salaries—by 66.7%. For CIC executives, holdbacks were abolished outright. Previously, holdbacks could contribute between 10% and 25% to an executive’s cash compensation, depending on the executive’s management level and the size and scope of the organization.

Effect on Total Compensation: Due to these changes, Crown executives saw annual cash compensation decreases between 6.7% and 25% of their base pay. Salary impacts ranged from about $9,400 to more than $111,000 annually, depending on managerial rank and organization. These actions were anticipated to conserve an estimated $1.82 million a year.

On-Going Decline in Executive Salaries

The trend of cutting executive pay continued in subsequent years. In the 2022-23 fiscal year, Saskatchewan’s Crown corporation executives earned $18.7 million in compensation, a 3% drop from the prior year. The reduction was due to the slashing of the salary holdback plan.

Notable Executive Salaries

The 2022-23 payee disclosure report identified the following executive salaries:

• Doug Burnett, SaskTel President and CEO (retired February 2023): $555,093, including $7,515 in out-of-province travel.
• Penny McCune, President and CEO of SGI (appointed June 2022): $445,174, including $19,355 in travel.
• Kent Campbell, President and CEO of CIC: $409,690, including $4,668 in out-of-province travel.
• Mark Guillet, SaskEnergy President and CEO (acting since February 2022, appointed May 2023): $387,739, including $6,408 in travel.
• Rupen Pandya, SaskPower President and CEO (appointed July 2022): $343,453, including $10,685 in out-of-province travel costs.

These numbers reflect the province’s dedication to keeping its finances in check and executive pay in line with public expectations.

National Context of CEO Compensation

Saskatchewan’s strategy on executive pay follows national trends. Canada’s 100 top-paid CEOs made an average of $13.2 million in 2023, according to the Canadian Centre for Policy Alternatives (CCPA). Although the number is lower than in years past, it is still considerably higher than average employee salaries, with top CEOs making 210 times the average employee in 2023.

Conclusion

Saskatchewan’s efforts to lower executive compensation in its Crown corporations demonstrate a wider national trend towards fairness and performance-driven pay structures. Through these changes, the province seeks to establish executive compensation more in line with public expectations and economic conditions to foster sustainable corporate governance practices.