BC Ferries is replacing its controversial bonus plan for executives with a salary holdback plan the company says is consistent with government guidelines on compensation.
Transportation Minister Tod Stone urged changes after the corporation reported in August that two vice-presidents collected $127,000 and $133,000 in bonuses.
The ferry board said today, “While the board strongly believes that the bonus plan for executives and managers has driven significant results in all areas of the company's performance, we have decided, at the request of the minister, to replace the plan with a salary holdback plan tied to achievement of financial and business results . . .”
The change for executives will be retroactive to last April.
The salary holdbacks will be applied to a maximum base salary comprised of the existing base plus the average bonus over the past four years. The holdback will be payable if pre-determined performance objectives are achieved.
In April, hundreds of senior managers will lose their bonuses. The average bonus of the past four years will be rolled into their base rates.
The company says the changes will save $900,000 in annual costs.
