CMHC Bonus Amid Housing Crisis: A $75 Million Controversy
The Canada Mortgage and Housing Corporation (CMHC) has been under scrutiny for distributing almost $27 million in bonuses in 2022, a time when the country is grappling with a housing affordability crisis. The average compensation for its executives rose to $697,667.
This move has raised questions about the organization’s priorities, especially considering the ongoing housing crisis. The CMHC bonus amid the housing crisis has sparked a public debate about the organization’s role and responsibilities.
The Public Reaction to CMHC Bonus Amid Housing Crisis
Franco Terrazzano, CTF’s Federal Director, criticized the move, stating that it doesn’t make sense for the CMHC to give out bonuses and increase its C-suite compensation while
Canadians can’t afford to buy a home. This sentiment reflects the public’s concern about the CMHC bonus amid the housing crisis.
Many believe that the funds could have been better used to address the affordability issues plaguing the housing market.
Since the beginning of 2020, the CMHC has handed out $75 million in bonuses. The average bonus paid to CMHC employees in 2022 was $11,700. Internal records reveal that more than 90 per cent of the federal Crown corporation’s staff have taken home an annual bonus in recent years.
This has sparked debates about the appropriateness of such payouts, especially when the organization’s primary goal, as stated on its website, is “housing affordability for all.” The CMHC bonus amid housing crisis seems to contradict this goal.
The Housing Affordability
The housing affordability crisis in Canada has been a significant concern. Ipsos and Global News polling shows that 63 per cent of Canadians who don’t own a home have “given up” on ever owning one. Nearly 70 per cent of respondents said home ownership in Canada is “only for the rich.”
The Royal Bank of Canada reported that “buying a home has never been so unaffordable.” These statistics underscore the severity of the housing crisis, making the CMHC bonus amid housing crisis even more controversial.
The average compensation for the CMHC’s nine executive committee members in 2022 was $697,667, according to its 2022 annual report – a $23,556 increase over 2021. The total annual compensation paid to the CMHC’s executives increased $721,000 in the last five years.
With the federal government planning to work with Crown corporations to achieve comparable spending reductions, it remains to be seen how the CMHC will adjust its compensation policies in the future. The CMHC bonus amid housing crisis will likely continue to be a topic of discussion as these changes unfold.