Larry Blain, the chief executive officer and president of Partnerships British Columbia, didn't just make $519,448 in the fiscal 2004-05. As first reported by Monday Magazine's Russ Francis last year, his contract also includes a $10,000 annual car allowance. But what you may not know is that that allowance is better than the average provided to chief executive officers in the private, public and non-profit sectors.
According to a letter sent to the Crown-owned company's then corporate and government relations vice-president Suromitra Sanatani by Western Compensation and Benefits Consultants, "automobile benefits are an executive perquisite commonly provided by organizationsâ€¦In the case of the Chief Executive Officer, about 30% of the employers provide a car (average value of $61,362) and the remainder provide a monthly car allowance (average of $8,991 per year).â€ Although, the consultants noted automobile benefits provided by "private sector companies or larger public sector organizationsâ€ would "likely be higher.â€
As a result, it looks like Partnerships British Columbia is paying an additional $1,009 for Mr. Blain's ride. The following is a complete copy of that letter, which was obtained by Public Eye via a freedom of information request.
Western Compensation and Benefits Consultants
Suite 2000, 1188 West Georgia Street
Vancouver, British Columbia V6E 4A2
Tel: 604-683-9155 Fax: 604-687-2315
Barry D. Cook
B. Comm., M.B.A., C.M.C., C.H.R.P.
Direct: (604) 683-9155
August 17, 2005
PRIVATE & CONFIDENTIAL
Ms. Suromitra Sanatani
Vice President, Corporate & Government Relations
Partnerships British Columbia
1250-999 West Hastings Street
Vancouver, BC V6C 2W2
Via E-Mail [email@example.com]
Re: Automobile Benefits
Further to my recent discussions with you, we are forwarding you this letter with regard to the provision of automobile benefits for executive positions.
Automobile benefits are an executive perquisite commonly provided by organizations. This benefit can involve the provision of an emloyer-owned or leased vehicle (including operating, maintenanc and insurance costs), or a monthly car allowance. The trend, however, has been in the direction of a higher proportion of employers providing car allowances.
To provide you with some idea of the quantum of this benefit, we have reviewed information in our Firm's Executive Compensation Database. In the case of the Chief Executive Officer, about 30% of the employers provide a car (average value of $61,362) and the remainder provide a monthly car allowance (average of $8,991 per year). The average car allowance for other executives is $7,378 per year.
When reviewing the above information, it must be kept in mind that our overall Executive Compensation Database is comprised of one-third public/not-for-profit organizations and two-thirds private sector companies. If we were to confine the analysis to only private sector companies or larger public sector organizations, the quantum of the automobile benefits provided would likely be higher.
Please call me if you wish to discuss this letter.
Barry D. Cook