In the 2024-2025 fiscal year, the Canadian federal government allocated approximately $201.5 million in bonuses to its executives, despite departments meeting only 54% of their performance targets. This means that nearly half of the performance goals set by these departments were not achieved. The bonuses were distributed among 7,987 executives, with 98.1% receiving performance pay, and 559 of them (6.9%) also receiving additional bonuses for exceptional performance.
The Canadian Taxpayers Federation (CTF) has criticized this practice, questioning the justification for awarding bonuses when performance targets are not met. Franco Terrazzano, CTF Federal Director, stated, "Bonuses are supposed to be for doing a good job, but bureaucrats are handing them out like participation ribbons."
This situation is not isolated. In 2025, Canada Post, a federal Crown corporation, reported a loss of nearly $1.6 billion and received a $1.03 billion taxpayer-funded bailout. Despite these financial challenges, Canada Post distributed $30.8 million in bonuses to its executives and managers.
Similarly, the Canada Mortgage and Housing Corporation (CMHC) awarded $31.7 million in bonuses during the 2025-2026 fiscal year, even as housing affordability remained a significant concern for Canadians.
These instances have sparked public debate about the appropriateness of awarding bonuses to government executives when their departments or organizations are not meeting performance targets or are facing financial difficulties. Critics argue that such practices may not align with the principles of accountability and fiscal responsibility.
The federal government has yet to provide a comprehensive response to these criticisms. The discussion continues regarding the criteria for awarding bonuses and the need for transparency and accountability in the use of taxpayer funds.