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Nearly all federal government executives received bonus pay last year even as departments fell short of many of their own performance goals, according to internal records obtained by the Canadian Taxpayers Federation through access-to-information requests.
The documents show about 98 per cent of federal executives qualified for bonus payments in the 2024-25 fiscal year, the most recent full budget year. In total, the bonuses amounted to roughly $201 million.
At the same time, federal departments met only about 54 per cent of their stated performance targets, based on the government’s own reporting data.
The federation says the findings raise questions about how executive compensation is tied to results.
“Bonuses are meant to reflect strong performance, but these numbers suggest executives are still being rewarded even when departments miss many of their goals,” said Franco Terrazzano, the organization’s federal director.
The records indicate executives may receive several types of additional pay, including performance awards, “at-risk” compensation and bilingualism bonuses.
Federal performance reports published over the last five years show departments failed to achieve at least half of their goals in two of those years. The strongest showing was in 2024-25, when just over half of targets were met.
The federation argues the bonus structure should be reconsidered as Ottawa faces rising deficits and debt. The federal government is projected to borrow about $78 billion this year.
Terrazzano said growth in the public service has not translated into better service for Canadians.
The federal workforce has expanded by about 99,000 employees over the past decade, while spending on bureaucracy has increased by roughly 80 per cent, he said.
A recent Leger poll cited by the group suggests half of Canadians believe federal services have declined since 2016, and a majority support reducing the size and cost of the federal public service.
“Canadians expect results for the money they send to Ottawa,” Terrazzano said. “The bonus system should reflect performance, not operate automatically year after year.”
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