In 2025, Canadian CEOs of the country’s 100 largest publicly traded companies showed a marked preference for cash compensation over long-term equity incentives, amid ongoing economic uncertainties. According to an annual review conducted in partnership with a governance consulting firm, median annual bonuses increased by more than 27 percent to nearly $2.2 million, while the value of stock options and other long-term incentive awards declined from the previous year.
The average CEO received short-term incentive payments that exceeded targets by 44 percent, reflecting strong performance relative to board-set goals. Patrick Dovigi, CEO of waste management firm GFL Environmental Inc., was the highest-paid executive, earning more than $230 million in total compensation. Nearly half of Dovigi’s pay came from categories outside the traditional salary, bonus, stock grants, and options, including $44 million in transaction bonuses linked to GFL’s sale of a majority stake in its environmental services division, over $20 million in life insurance premiums, and approximately $31 million in anticipated tax payments known as gross-up payments.
The prominence of gross-up payments in Dovigi’s compensation package drew attention, as such forms of compensation have become increasingly rare due to governance scrutiny in both Canada and the United States. These payments are intended to cover an executive’s tax liabilities on certain benefits, but industry observers have raised concerns about their appropriateness.
In terms of long-term incentive structures, performance share units (PSUs) accounted for half of all stock-based awards among the top executives, while restricted share units (RSUs) made up 26 percent. PSUs differ from RSUs in that their payout depends on the company meeting specific financial or operational targets, a feature advocated by institutional investors and governance groups to better align executive rewards with company performance. However, the proportion of PSUs did not increase substantially last year, partly attributed to the influx of new companies—particularly mining firms responding to surging metal and mineral prices—that made the top 100 list for the first time and are still developing their compensation practices.
Mining companies’ representation in the top 100 rose from 13 percent in 2024 to 22 percent in 2025, reflecting the sector’s growing economic significance. The study noted that some mid-tier mining companies are still adjusting their executive compensation frameworks in response to heightened investor scrutiny as they ascend the rankings.
Gender diversity among Canada’s highest-paid CEOs remained limited, with only four women leading companies on the top 100 list in 2025, a decrease from six the previous year. Among them, Canadian National Railway CEO Tracy Robinson ranked 12th in pay, with total compensation of $21.5 million, making her the only female executive in the top 50 by compensation.
Experts suggest that the shift toward greater short-term cash payouts may be linked to ongoing macroeconomic uncertainties, including trade tensions and tariff risks, which encourage executives to prioritize immediate, tangible compensation over more variable, long-term incentives. This trend points to a cautious approach by corporate leaders amid an evolving economic landscape.