CMHC criticized for handing out $26 million in bonuses
The Canada Mortgage and Housing Corporation (CMHC) is raising eyebrows after it was determined that the federal corporation gave out over $26 million in bonuses.
According to a report by the Canadian Taxpayers Federation (CTF), an advocacy group, 98% of CMHC employees received around $27 million in bonuses in 2022.
In an email to Daily Hive, CMHC confirmed that 2,222 CMHC employees received incentive awards in 2023 for the 2022 work year, totalling $26,431,848.
Including the bonuses handed out in 2023, the total since 2020 reached $101,676,787. According to CMHC, employee and executive incentives in 2022 (paid in 2023) were 11% of their individual salaries.
Executives also received $211,000 in “other benefits.” Employees were paid through the regular operating budget, which comes from the income-generating side of the business, including the corporation’s mortgage insurance business. Compensation was also tied to individual incentives.
“The total compensation offered by CMHC as an employer — including base salaries and incentive pay — is an important tool for attracting and retaining the employees we need to carry out its work and deliver on important programs for Canadians,” reads the CMHC statement.
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CMHC aims to focus on sustainability and stability in Canada’s housing system through programs and research. It’s also a resource for newcomers looking for housing in Canada and assists with “affordable and market rental housing.”
From 2017 to the end of 2023, CMHC reported returning $19.2 billion in dividend payments to the government.
However, CTF Federal Director Franco Terrazzano is questioning the corporation’s decision to give out bonuses.
“Why is the CMHC patting itself on the back and showering staff with bonuses when Canadians can’t afford homes?” asked CTF Federal Director Franco Terrazzano. “If the CMHC’s number one goal is housing affordability, then it doesn’t make sense to hand out $100 million in bonuses during a housing affordability crisis.”
The past few years have been the toughest times for Canadians to afford a home, according to an RBC report.
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“High rates have intensified stress for many mortgage holders contending with substantial payment increases at term renewal time,” reads the report. “Importantly, high rates have seriously crimped house hunters’ purchasing budget.”
Canadians took to social media to express their outrage.
How about the $27 million given out in bonuses to CMHC employees for doing what? Nothing? That could have helped a lot of people!
— Marilyn Staple (@mkstaple) April 6, 2024
Another tax payer funded organization that needs to be trimmed
— mp_Tracker (@track_mp) April 4, 2024
Keep up the good work. We need to expose how wasteful and inefficient our government is, and recognize that most of the funding ends up in politicians/affiliates pocket, never getting anything done for people.
— will salinas hurtado (@tweetingwil) April 4, 2024
Minister of Finance of Canada Chrystia Freeland stated in Budget 2023 that the government will work with federal Crown corporations to reduce spending by $1.3 billion over four years, from 2024 to 2025.
“In total, these proposals represent savings of $15.4 billion over the next five years,” stated Freeland.
Terrazzano said, “The feds need to stop rewarding failure with bonuses. Freeland said she would find savings in Crown corporations, and these bonuses should be the first thing on the chopping block.”
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