THUNDER BAY – The Tbaytel board of directors says it’s time to update compensation rates for members of the board, which have remained unchanged since 2006.
Thunder Bay’s city council will vote Monday on a request from the board of the municipally-owned telecommunications company to boost annual director stipends from $6,000 to $7,600.
The request would also see the rate for each 3.5 hour period of extra work directors put in raised from $250 to $320.
It’s a “modest compensation increase” calculated based on national cost of living increases since compensation was last changed 15 years ago, said board chair Jack Jamieson in a memo to city council.
As chair, Jamieson himself would see his compensation rise from $7,800 to $9,900.
“Compensation has been unchanged since 2006, has fallen behind inflation, and has not kept pace with corporate best practices,” he wrote. “Tbaytel’s increased complexity requires very specific expertise to govern efficiently and to protect the City’s asset.
“Canadian corporations of similar size and complexity have higher remuneration and that gap will eventually become an impediment to attracting best in class board members.”
The board includes lawyers, chartered professional accountants, a professional engineer, and several corporate executives, among others.
In the letter, Jamieson said the board’s record over the previous 15 years also helped justify the boost, with annual revenues growing from $96 million to $200 million.
The change, if approved by city council, would cost Tbaytel an estimated $42,000 per year.
