Nearly all senior federal executives received taxpayer‑funded bonuses last year, even though government departments achieved just over half of their own performance targets, according to newly released federal data.
Access‑to‑information records obtained by the Canadian Taxpayers Federation show that about 98 per cent of federal executives were awarded bonuses or performance pay in the 2024–25 fiscal year, amounting to roughly $201 million.
Departments and agencies evaluate their performance using targets laid out in their annual plans. In the same year that bonuses were distributed almost universally, government figures indicate that departments collectively met only about 54 per cent of those targets.
The bonus system includes a range of incentive payments — such as performance awards, “at‑risk” pay, and other allowances — intended to reward executives for meeting or exceeding objectives. Critics argue that these payments are being handed out broadly even when organizational goals fall short.
The Canadian Taxpayers Federation’s federal director said the high rate of bonuses raises questions about how performance is being measured and rewarded, noting that such payments are supposed to recognize strong results.
Records also indicate that executive bonuses are part of a long‑standing pattern of substantial compensation for senior public servants. Over the past decade, federal bonus payments — including performance‑linked pay — have totaled billions of dollars, even as some public services face staffing shortages and operational pressures.
Separate federal data from a Treasury Board report shows that performance pay has become standard across the core public service, with nearly all executives receiving some form of variable compensation in recent years. This reflects a system in which portions of executive pay are tied to both individual and organizational outcomes.
Supporters of performance‑based pay argue that it helps attract and retain skilled leaders and aligns compensation with responsibility. They also note that performance targets for complex programs can be affected by factors outside an executive’s direct control.
Still, the widespread distribution of bonuses has drawn public scrutiny at a time when many Canadians are concerned about government spending and service delivery. Some analysts say the situation underscores the need to reassess how performance outcomes are defined and measured, and whether the current bonus framework effectively drives improvements in public service results.
