The newly appointed CEO of Canada’s Infrastructure Bank will be paid a base salary of $600,000 but could earn more than $2.8 million by the fifth year of his tenure.
Pierre Lavallée was appointed CEO of the new agency last month. His total compensation will consist of a base salary as well as variable “at-risk” pay and long-term incentives that will be awarded by the crown corporation’s board of directors.
If the bank directors “deem certain performance criteria have been met” Lavallée could earn up to $450,000 in additional “at risk pay” in his first year on the job, said a spokesman for Infrastructure Minister Amarjeet Sohi in an email. That potential bonus will increase every year and could total up to $1.1 million by year five.
Lavallée could also be awarded long-term incentive pay of $150,000 starting in the second year of his tenure. That potential pay also increases every year up to $830,000 by the fifth year.
If he was awarded the maximum in the fifth year of his term, Lavallée could be awarded total maximum compensation of $2.82 million.
“To attract and retain executive talent, the CIB board of directors considers the expertise required in the role, market-based indicators for individuals in comparable positions, and performance metrics,” the spokesman said.
Lavallée is a former senior executive at the Canada Pension Plan Investment Board is the bank’s first CEO and is charged with forging infrastructure partnerships between government and the private sector.
The Infrastructure Bank is a key element of the Liberal government commitment to spend a total of $180-billion on infrastructure projects over the coming decade.