New TransLink CEO salary is lowest in Canada

The next CEO of TransLink will earn an annual salary of almost $320,000, plus a generous benefits and bonus package.

(CBC: TransLink CEO job posting lists massive salary)

The new salary offer for TransLink’s next CEO is out and as expected, members of the public are complaining non-stop about a number that is being described by media as “massive” and “fat” as it is north of $300,000.

Earlier this year I wrote a blog post suggesting TransLink’s executive pay should be looked at in a different way, a post that was so well-received that it engaged the entire region and sent the page-view counts on this blog skyrocketing. When transportation professionals with the Victoria Transport Policy Institute quoted this blog post in a major study of theirs, I knew I had hit something right on the nail.

Now that the new CEO salary figures are out and everyone is once again relentlessly complaining, I decided to run the numbers again to see where TransLink is now against Canada’s major cities. The base salary is now in line with that of Toronto’s TTC and Montreal’s STM, but not when a bonus of up to 30% is considered:

“Greater Ottawa” in this chart counts both OC Transpo and Gatineau-Hull’s STO

But, when you consider all of the transit agencies servicing a metro area, the executive payment in this region is comparatively minuscule:

The “all” in the above chart represents all transit authorities servicing a given area. As an example, in addition to Toronto being serviced by the TTC, Mississauga is managed by Mi-Way; York Region is managed by York Regional Transit; GO Transit operates regional commuter rail and a TransLink-like regional authority called “MetroLinx” is required to tie them all together. Each of these operators has their own executives and CEOs.

Our region has 1 transit operator with 1 CEO; others have many different operators and multiple CEOs. It’s a concept that’s so simple and easy to understand, and it is absolutely crucial that we familiarize ourselves with it.

When TransLink’s context of a single, region-wide transportation authority is considered against what the region-wide setup is in Canada’s other metropolitan areas, Metro Vancouver actually has the lowest per-capita CEO salary of any major city in Canada. Even if our CEO receives a full 30% bonus.

We now pay about 17.5 cents per capita if the CEO earns a 30% bonus; whereas the people of greater Toronto pay between 1 and 12.5 more cents more for their executives (depending on what you would include as greater Toronto’s transit operators), and the people of greater Montreal each pay between 6 and 12.5 cents more.

We will also be paying our new CEO less for every revenue hour of transit service they manage, even if the CEO receives a full 30% bonus:

Top in-charge earnings per revenue hour of transit service 2015 NEW

I compiled the data for all to review here (LINK to this spreadsheet):

Outlook

Nickels for everybody! Yaaayy!
Nickels for everybody! Yaaayy!

The revised, lowered CEO salary will put a maximum of 5 cents back into people’s pockets and would not even pay for buying a single bus. Despite the relatively minimal benefits to Metro Vancouver’s citizens, attracting a new CEO will be a more difficult task with a lower offer, and TransLink should be commended considerably if and when they are able to do so.

The response a TransLink spokesperson offered in Jeff Nagel’s recent report for the Surrey Leader pretty much sums up why TransLink can’t be considered a “transit operator” in the usual vein:

“It needs to be a competitive salary,” Moore said, adding the challenge with comparing TransLink to other transit authorities is there is nothing similar in North America.

“The No side in the plebiscite wanted to compare the CEO of TransLink to one of nine CEOs in Seattle or one of eight CEOs in Toronto,” Moore said, referring to areas where multiple separate agencies do the work of TransLink. “Nobody else has an integrated rail-bus-road infrastructure.”

Pay offer for the next TransLink CEO under fire – Jeff Nagel, Surrey Leader

But, I don’t think most people are ready to understand this – it’s probably easier to think that our transit operator is a transit operator like any other, regardless of the serious differences in the way we are organized. It’s clear that much of the “NO” vote in the recent referendum was motivated by an unfavourable view of executive salaries, which were not being looked at in a proper context.

If anything, this should have an effect on how the provincial government interprets the “NO” vote altogether. At this point, the only way that the misinformation around executive salaries in this region can be offset is for someone to take leadership and recognize the serious flaws in how people have been informed on this matter.

SEE ALSO: Referendum Myths – TransLink and Executive Salary

Author’s note: This post was updated on July 27, 2015 to account for newly released numbers and other issues pointed out with the original post.