Finance DMs Give Generous Bonuses Over The Years

That amounts to more than some government clerks and many Canadian workers earn in a year. So just what were several deputy ministers of Finance doing as the touted upholders of restraint in government doling out such excessive amounts? And why should the Canada Investment and Savings Bond Agency management get increasingly greater performance bonuses for the last several years when Canada Savings Bonds (CSB) sales and holdings have been greatly deteriorating? Documents show that the top four Canada Investment and Savings Bond Agency's executives for just the 1999 to 2004 period received a combined under $600,000 in bonuses or over 87 per cent of what their collective maximum bonus ceilings were during those years. That's in addition to pulling in over $3.4-million in salaries for those years along with club membership and subsidized parking privileges. One senior Finance Department official said in a September 2004 internal note that such remuneration "leaves us vulnerable to questions," according to documents. The agency's rationale for record high bonuses is that their executives possess special skills not found in the public service and so such incentives are needed to attract and retain such people, according to documents. Jacqueline Orange, who became president of Canadian Investment and Saving Agency in 1996 through to April 2005, began with a contract as an EX 5 that offered up to a $20,000 bonus, which then rose to $35,000, and by 2002 until 2005 gave her the possibility of annual bonuses of up to $50,000. Senior executive category employees in other agencies in 2003-04--that's 4,430 of them--received on average a $1,959 bonus. And those bonuses given out since 1995-96 are widespread. Louise Montague, who was the agency's vice-president for sales and distribution at an EX 3 level since November 1999, was in April 2005, quietly named acting president after Orange's departure. Montague was originally brought in as an adviser in 1998 to assist in developing the sales distribution strategy with a contract worth up to $325,000. A Finance Department media line in September 2004, states that the amount paid out to her was $284,000 over 18 months. Montague, in turn, was instrumental in hiring as an adviser, with a title of national sales manager, Anthony Buccongello, according to documents. His contracts from April 2000 to June 2003 were not to exceed $593,256.15. That included up to a $34,000 incentive bonus. In June 2003, he joined the agency's management at the EX-1 level. Since April 2005, he is acting vice-president for sales and distribution. The agency's management has also been paying out bonuses to its national sales force. This is in addition to paying them base commissions, despite declining CSB holdings. From 1998 to 2004, more than $5.4-million in bonus commissions were paid on top of the more than $10.7-million in base commissions. The agency's managers since 1996 have also contracted out many lucrative multi-million dollar contracts to various companies and advisers, including Ekos; Vickers and Benson; and Media IDA Vision. The agency's rationale is that it takes a lot of contract work to advertise and market the Canada Savings Bonds. The most controversial contract work, amounting to over $5-million until 2005, has been that done by Ekos, with its silent partner, Earnscliffe. The April 18 Commons Public Accounts Committee hearing specifically examined how Ekos/Earnscliffe initially in 1994-95 got to be selected to do consultant work for the retail debt agency which was then being formed. Continued here: http://www.thehilltimes.ca/html/index.php?display=story&full_path=/2005/june/20/rubin/&c=1

Note: http://www.thehilltimes...