Winnipeg Free Press - PRINT EDITION

Auditor general questions wages

Corporate salaries called 'high' in report

  • Print

Manitoba's auditor general wants the province to "assess the reasonability" of salaries paid to top officials at the corporation that oversees The Forks Market and operates the parkade at Portage Place.

In a report this week, Carol Bellringer called the pay received by North Portage Development Corp. CEO Jim August "high" compared with salaries earned by provincial deputy ministers and senior executives of Crown corporations.

In 2011, August was paid $228,937, according to information provided by the NPDC on Thursday. The figure includes a contribution to an RSP, a car allowance and any bonuses that may have been paid.

Bellringer reviewed North Portage's books at the request of a member of the public. She is not obliged to investigate citizen concerns, but does so occasionally.

The North Portage Development Corp. is owned equally by the city, the province and the federal government. Each level of government appoints members to the organization's board, which sets the CEO's salary. August, in turn, is responsible for setting the salaries of those who work for him.

A provincial government deputy minister can earn anywhere from $105,951 to $162,331.

In 2011, Bob Brennan, then-president and CEO of Manitoba Hydro, the province's largest Crown corporation, earned $229,000, a Hydro spokesman said Thursday.

Rick Bel, chairman of North Portage's board of directors, said the corporation recently reviewed its upper management salaries with the help of a consultant and found its executive compensation packages were in line with what was paid by similar organizations. "The board is happy with what those salaries are," he said Thursday.

In her report, Bellringer said the province told her it has no authority to regulate remuneration paid by the NPDC. That authority rests with North Portage board, it said.

In an interview, Bellringer said that may be technically true, but it shouldn't stop the province from playing a role. "We still stand behind the recommendation," she said.

The North Portage Development Corp. and its subsidiary companies own and operate The Forks Market and the Portage Place IMAX Theatre, which is slated to close at the end of March. It operates the parking lot in Portage Place mall as well as several others in the downtown area. It also collects lease revenue from the Johnston Terminal at The Forks, the Inn at the Forks, Portage Place and Citytv. In 2012, it had revenues of $11 million and expenses totalling $9.4 million.

In its most recent fiscal year, Manitoba Hydro earned a profit of $61 million on revenues totalling $1.9 billion. In 2011, Hydro also paid two senior vice presidents $177,000 each, while another half dozen senior officials earned salaries in the $151,000 to $160,000 range.

In 2011, Paul Jordan, North Portage chief operating officer, earned $140,462, while Paul Webster, the NPDC's chief financial officer, made $150,890. The corporation does not have a pension plan.

Meanwhile, Bellringer also recommended the North Portage Development Corp. amend its bylaws to limit the number of terms a board member may serve. Directors appointed by the three levels of government are named for a three-year term, but there is no limit on how many terms they can serve. The longest-serving members have been on the board for 11 years.

The auditor general also recommended the province, in consultation with other levels of government, encourage the corporation to release more detailed financial statements to the public. Currently, it discloses consolidated financial statements for the corporation as a whole, but doesn't provide a detailed breakdown for different segments of the business.

larry.kusch@freepress.mb.ca

Republished from the Winnipeg Free Press print edition January 18, 2013 A5

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

On the job with sea lion researchers

View more like this

Photo Store Gallery

  • A goose flys defensively to protect their young Wednesday near Kenaston Blvd and Waverley -See Bryksa 30 Day goose challenge- Day 16 - May 23, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Geese take cover in long grass in the Tuxedo Business Park near Route 90 Wednesday- Day 28– June 27, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Should the federal government force band chiefs and councillors to disclose their salary information?

View Results

View Related Story

Ads by Google