Question Period Note: CANADA INFRASTRUCTURE BANK COMPENSATION

What is compensation of the CEO of the Canada Infrastructure Bank?

• The Board of Directors of the Canada Infrastructure Bank (CIB) recommends the salary and performance framework for the Chief Executive Officer (CEO), and this is public and transparent.

• The CEO of the CIB requires specialized skills and experience to develop and execute complex partnership projects with private sector investors and deliver the best value for public resources.

• The Government abides by Privacy Act and Access to Information Act provisions concerning employee compensation. Any information concerning individuals and their compensation is protected as it is personal information.

• All Crown corporation Chief Executive Officers (CEOs) are subject to Governor in Council (GIC) appointee annual performance review processes, and performance rating recommendations come from the Board of Directors to the designated minister.

• The GIC performance management regime requires the Board of every Crown corporation to annually assess their CEO and share their assessment with the appropriate minister, as well as to seek and reflect that minister’s views in their performance rating of the CEO.

• The CIB develops and executes project deals with private sector investors to deliver the best value for public resources. To execute on its mandate, it must attract top global talent with competitive compensation packages.

• Results of individual awards and compensation are not disclosed for protection of personal privacy, although the framework and ranges are public.

• Remuneration for the former CEO included the following as set out in 2018/19 as year 1:

  ◦ Base salary: range of $510,000 - $600,000 per annum.

  ◦ In addition, the former CEO’s compensation included annual short-term and long-term incentive awards, subject to the Board of Directors’ review of the CEO performance against objectives, as follows:

  ◦ Annual Short-Term Incentive Award:

   ▪ Year 1: between 0% and 75% of base salary 
  
   ▪ Year 2: between 0% and 120% of base salary
  
   ▪ Year 3: between 0% and 135% of base salary 
  
   ▪ Year 4: between 0% and 160% of base salary 
  
   ▪ Year 5: between 0% and 185% of base salary
  

  ◦ Long-Term Incentive Award:

   ▪ Year 1: between 0% and 75% of base salary 
  
   ▪ Year 2: between 0% and 120% of base salary 
  
   ▪ Year 3: between 0% and 135% of base salary
  
   ▪ Year 4: between 0% and 160% of base salary 
  
   ▪ Year 5: between 0% and 185% of base salary
  

• The second CEO of the corporation is to be appointed by the Board of Directors, subject to GIC approval. Any changes to the performance regime would require GIC approval.

• The Board of Directors also recommends an annual assessment of the CEO to the Government, consistent with other Crown corporations.

• The Board of Directors is currently in the process of recruitment and selection of a CEO nominee.

• Compensation for the CEO includes ranges for short- and long-term performance incentive awards that are recommended by its Board of Directors.

None