BC Ferries says executive bonuses justified

After announcing pay bonuses and perks for its top executives last week, BC Ferries says it isaware of concernsover rising fares, but good people cost money.

• Read more about the fare increases

"We must attract highly skilled and experienced executives to run what is one of the world's largest integrated marine enterprises," saidBC Ferries board chair Donald Hayes during the corporation's annual general meeting on Friday.

Earlier this month, the corporation revealed itschief executive officer Michael Corrigan made $563,000 after bonuses and a salary boost of eight per cent.

Executive vice-president Glen Schwartzsaw his "annual incentive" pay increase to $127,008, up $64,298. And Robert Clark, executive vice-president and chief financial officer, saw his bonus jump to $133,711, up $73,359.

Today, Hayes justified Corrigan's wage hike, saying the eight per cent jumpcame only after his promotion from CFO to CEO.

Hayes added executive bonuses serve the corporation well, announcing $26 millionin savings and an increase of $1 million infirst quarter earnings compared to last year.

But even BC Ferries CEO Michael Corrigan admitted a reliance on government subsidies, noting 22 out of 25 routes still need the subsidies to break even.

Meanwhile, the B.C.NDP want to change the Coastal Ferry Act in order to end pay increases for ferry executives.

"A simple change to the Coastal Ferry Act would stop these unacceptable annual compensation increases for top ferry executives that have become a tradition in B.C., even as ferry passengers are hit with rising fares and service cuts" said B.C. NDP leaderAdrian Dix.