(CANADA) — The Canadian Centre for Policy Alternatives reported that Canada’s 100 highest-paid CEOs collected an average of $16.2 million in total compensation in 2024, setting a new record and widening the gap with worker pay.
Key figures and headline comparisons
- Average CEO pay (top 100, 2024): $16.2 million
- CEO-to-worker pay ratio: 248:1 (compared with an average Canadian worker annual pay of $65,548)
- Shopify CEO Tobias Lütke: $205,470,115 (primarily stock and option awards) — described as the highest in Canadian history
- Average CEO hourly rate (report’s calculation): $7,812 per hour — which implies a top CEO would earn an average worker’s annual salary by 9:23 a.m. on January 2 each year
- Lowest-paid among the top 100 (still): $7.2 million
- 2024 average vs. 2022 previous high: $16.2M vs. $14.9M
How pay is structured and what drove the record
The report attributed the record pay levels largely to the growing weight of variable, performance-linked compensation rather than base salary.
- Analysts estimated roughly 80%+ of total CEO pay in 2024 came from:
- Bonuses
- Share awards
- Long-term performance incentives
That structure ties executive compensation more closely to corporate profitability and market performance, which the report cited as a major factor behind the 2024 record figures.
Notable individuals and placements
- Tobias Lütke (Shopify) — topped the list at $205,470,115, with pay composed largely of stock and option awards rather than base salary. The report described this as the highest compensation in Canadian history (some earlier summaries placed the figure at $205.5 million).
- Jay S. Hennick — placed second in the list summary; the report summary did not name his company in the material provided.
Quotations and perspectives
David Macdonald, senior economist at the Canadian Centre for Policy Alternatives, attributed the gap to CEOs’ greater bargaining power compared to average workers.
DT Cochran, an economist at the Canadian Labour Congress, called the levels “outrageous,” linking them to power imbalances rather than unique skills.
Broader trends and context
- The report described a long-running shift in executive pay practices where equity-based awards and long-term incentives increasingly outweigh salary.
- Compensation for top executives has more than doubled since the 2000s, the report said, tying this trend to debates about inequality and how corporate gains are shared.
- The Canadian findings mirror an international pattern (similar trends in the United States and elsewhere) where corporate leaders command packages heavily tied to stock performance and long-term incentives.
Policy debate and proposed responses
The report summarized ongoing public debate and policy proposals, without prescribing specific legislation:
- Proposals mentioned:
- Higher marginal taxes on top earners (including calls for a “millionaire’s tax”)
- Wealth taxes targeting individuals with net assets above defined thresholds
- Arguments summarized:
- Supporters of higher taxes: rising executive pay highlights broader labour-market disparities and justifies redistributive measures.
- Critics of punitive tax schemes: warn such measures could harm competitiveness and investment.
Calculations and illustrative comparisons
- The report’s hourly calculation: $7,812/hour for the average top-100 CEO.
- Using that rate, a top CEO would have earned an average Canadian worker’s yearly pay (about $65,548) by 9:23 a.m. on January 2.
- The 2024 average $16.2 million surpassed the previous high of $14.9 million in 2022, with the increase attributed mainly to variable pay components.
Limitations and data notes
- The report did not specify the number of workers used in the average wage calculation beyond citing an average annual pay of $65,548.
- It did not provide additional breakdowns of pay by sector in the material provided.
- One corporate name (Jay S. Hennick’s company) was not identified in the provided summary.
Conclusion and framing
The Canadian Centre for Policy Alternatives framed the 2024 record as part of a longer-term shift in corporate pay practices toward equity-based and performance-linked awards. The report used the 248:1 ratio and the record $205,470,115 pay package for Shopify’s CEO as focal points to illustrate widening disparities between top corporate leadership and the typical Canadian worker.
DT Cochran’s “outrageous” characterization, cited in the summary, reflected labour-linked economists’ view that these compensation outcomes reflect bargaining power imbalances more than a scarcity of unique skills.
Canada’s top 100 CEOs reached a record average compensation of $16.2 million in 2024, creating a massive 248:1 pay gap with average workers. Driven by stock options and performance bonuses, Shopify’s CEO set a national record with $205 million. The findings have reignited policy debates over wealth taxes and income inequality as executive pay has doubled since the 2000s while worker wages lag.
