Bank of Canada gave employees $45 million in raises, bonuses despite failing to hit inflation target

Nonetheless, the Bank of Canada congratulated itself on a job well done, handing out $45 million in pay raises and bonuses to its employees in 2020 and 2021.

According to the Canadian Taxpayer's Federation, $5.3 million in pay raises was distributed amongst 1,728 BoC employees in 2020, with 1,857 receiving a combined $5.2 million the following year.

In addition, bonuses were handed out to 1,632 employees in 2020, and 1,752 in 2021, totalling $16.2 and $18.4 million, respectively.

Bonuses are, according to the BoC, only given when employees are found to be "successfully meeting or exceeding expectations."

In 2020 and 2021, however, not many would describe Canada's financial situation as "exceeding expectations."

During that time, the BoC printed over $300 billion. Consumer prices rose substantially, with 2021 seeing nine consecutive months with increases higher than 3 percent.

"We got some things wrong," BoC Governor Tiff Macklem said in 2022, with deputy governor Toni Gravelle adding that they "haven't managed to keep inflation at our target."

Federal Director of the CTF, Franco Terrazzano, slammed the BoC for its decision to reward employees despite acknowledging less than satisfactory work.

"Why is the Bank of Canada patting itself on the back and handing out millions in bonuses and pay raises while Canadians are struggling to pay for groceries and gas?" he said. "If its objective is to keep inflation low, then it doesn’t make sense for Canada’s central bank to hand out bonuses and pay raises while the cost of living soars."

He called on the BoC to "reverse these pandemic pay hikes" and refuse to hand out pay raises or bonuses in 2022.