A scathing report of ICBC’s management costs released on Thursday has caused its CEO, Jon Schubert, to resign from the Crown corporation.
The government’s review of ICBC chided the corporation for several reasons revolving around rising management costs, and made 24 recommendations to improve on. The review found that senior managers’ pay jumped 70 per cent from 2007 to 2011, and positions jumped 32 per cent in that same time.
One of the government’s 24 recommendations is that ICBC reduce its number of positions by 165-195 by 2014.
The CBC also reported that ICBC has paid $350,000 in signing bonuses and $25 million severance over the past five years.
The Huffington Post B.C. reported that ICBC is currently working on meeting all 24 recommendations, and finance minister Kevin Falcon “acknowledged a gap between economically prudent spending and ICBC’s staff raises.”
The Government of BC, on Thursday, also said it hopes ICBC will return to its budget levels from 2008, and it expects the corporation will have cut costs from $50 by December 31, 2013.
“ICBC has provided good value for its customers over the last 10 years and kept premium increases low, but our government expects ICBC will make every effort to keep costs to a minimum,” said Falcon. “That is why ICBC has been directed to bring compensation more in line with the public sector and develop clear measures for cost containment.”
Schubert will officially resign on Nov. 15, 2012 and he will be paid as a consultant until next June.
BCLocalNews reported in September, 2011 than Schubert was (at the time) the ninth highest-ranking public sector employee in British Columbia, raking in $522,178 as the CEO of ICBC.