ICBC head to resign after scathing government review

ICBC head to resign after scathing government review

CBC News

Posted: Aug 16, 2012 11:26 AM PT Last Updated: Aug 16, 2012 7:48 PM PT

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The head of ICBC, Jon Schubert, is set to resign his position after a scathing government review condemned increased management costs at the provincially-run auto insurance corporation.

Schubert’s resignation as CEO will take effect on Nov. 15, but he will continue to be paid his full salary as a consultant until next June.

The review of the crown corporation, published Thursday, found that ICBC has seen a 32 per cent increase in management positions since 2007.

Jon Schubert's resignation will take effect on Nov. 15, but he will continue to be paid as a consultant until next June.Jon Schubert’s resignation will take effect on Nov. 15, but he will continue to be paid as a consultant until next June. (CBC)According to the review, in the past five years ICBC has paid $365,000 in signing bonuses and $25 million in severance pay.

The total compensation cost for the management and confidential employees increased 50 per cent during the last five years, said the report.

Finance Minister Kevin Falcon said there has been a major disconnect between what makes sense economically and ICBC’s staff increases.

The provincial government is now ordering ICBC to cut costs by reducing between 165-195 positions over the next two years.

The review also recommends increasing oversight, reducing legal and procurement costs and improving management of bodily claims injuries.

The provincial government said it expects ICBC to bring overall operating costs more in line with 2008 budget levels, and reduce costs by a total of $50 million by the end of 2013.

The review of the corporation’s financial practices follows a CBC News report of December 2011 that revealed a $188,681 expense account payout to a former executive.

Art Kirkner — hired in 2008 as an ICBC vice-president from the U.S. to help cut costs in ICBC’s claim centre system — was found to have filed the expenses in 2010 on top of his salary and bonuses of more than $315,000.

In February, ICBC announced managers would no longer receive bonuses based on individual performance but instead would be rewarded for the corporation’s overall level of profit.

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COMMENT:

We, the long suffering taxpayers,were regaled with the recent Auditor Generals report re: the Provincial Gov’t poor accounting for all MLA’s (Liberal and NDP….)

We know that BC Ferries is another black hole where many of the employees indulged themselves with salary increases and perks in what is a M-O-N-O-P-O-L-Y.

Why should we expect anything different from ICBC ?

It appears that if one is elected/hired in any of the aforementioned, it is open season on the organizations fiscal assets. ” Here’s the keys..help yourself “.

Again..this goes back to my premise of THEM versus US. Even when they are caught…..or should I say exposed, the worst thing that happens is they get to keep what they pillaged and a golden handshake. Many of them also get a pension for some strange reason…which is an even scarrier detail given the long term liability that imposes on the taxpayer.

Obviously , they are more concerned on filling their pockets than trying to keep premiums down.

What other horror stories are lurking out there in other Gov’t agencies ? IMHO, these parties know what they are doing is wrong, UNethical, but in their minds grab as much as they can before they are caught

 

Taxpayers: Time for a revolution !!!!

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