The decline in performance at Investissement Québec (IQ) over the past year did not affect bonuses as they hit a record high of over 12 million. Crown Corporation employees have to work even shorter hours to be eligible for this treatment.
Posted at 5:00 am
This sharp 42.5% annual increase in the fund is primarily explained by the number of unionized and non-union employees of the Quebec State Investors division who are eligible for the bonuses, data obtained shows The press under the Law on Access to Documents of Public Bodies and Protection of Personal Data.
Thus, 945 people, representing 86% of IQ’s total workforce, shared half of the total prize pool. For these employees, the average bonus increased by 50% to $6,467. In its response, Crown Corporation states that the Legault government has given the go-ahead to raise “certain targets” in addition to “lowering the threshold of hours worked to qualify for a bonus.” The modalities surrounding this last aspect were not specified.
“The criteria for certain eligible categories should be revised,” said François Dauphin, President and CEO of the Institute for the Governance of Public and Private Organizations (IGOPP).
Is it okay to give technical staff up to 5% of annual salary as a bonus?
François Dauphin, President and CEO of the Institute for the Governance of Public and Private Organizations
Among unionized and non-unionized employees, there are 272 people in administrative and technical roles. That is 25% of the total number of employees at IQ (1097 people). The target bonuses for these employees vary between 3 and 5% of the annual salary. For professionals, who make up 60% of the workforce, the range varies from 7% to 20%, depending on the type of position. Previously, the target was set at 7% regardless of employment level.
A return to earth
In 2021-2022, IQ posted a 7.6% return, a far cry from last year’s 25% return. In 2020 – a year marked by the economic shocks of the COVID-19 pandemic – the return was -4.9%.
“The company has delivered strong results over the year [2021-2022] and achieved most goals […] both financially, with an average return of 9.3% over the last three years, and in terms of other indicators,” explains IQ in its response.
This average rate of return exceeds the average cost of equity, which is the government’s estimated borrowing rate at around 2%. Mr Dauphin adds a caveat: The “exceptional” year of the pandemic recovery in 2021 is “abnormal data” that “pulls” performance over three years, he believes.
The expert also wonders about certain indicators of the strategic plan that are used to measure performance and are ultimately reflected in performance pay. He is an example of improving the customer experience.
“There are indicators that are not easily measurable and quantifiable,” says Mr. Dauphin.
Difficult to remember
IQ does not mention any retention challenges in its annual report, which takes stock of the fiscal year ended March 31. However, with a turnover rate of 12.1% last year, including 7.2% voluntary departures, this could explain the treatment of unionized and non-union staff, believes Mr Dauphin.
“People in the financial sector are extremely mobile,” he says. It is possible that IQ will become an incubator for other organizations. »
The turnover rate is very high. I feel like we have a real need for bonding.
IQ President and CEO Guy LeBlanc was entitled to a $105,000 annual bonus, up slightly from $5,000. In 2021-22, his total compensation, which includes base salary and other benefits, was nearly $888,000.
- 349 million
- Investissement Québec Adjusted Net Income 65% Lower YoY in 2021-2022
Source: Investment Quebec