ICBC could be on the hook for millions in severance as they trim staff

While ICBC cuts staff to reduce costs they could be on the hook for millions of dollars in severance payments. 

 

Seven executives were sent packing last week, and ICBC says over a million and half dollars in potential severance could be spent on them alone. 

 

Craig Horton leads the pack with a possible severance pay out of 17 months on a base salary of $274,000 a year. 

 

Six of the seven outgoing executives have base salaries of $200,000 a year or higher with severance ranging from 6 to 18 months. 

 

This is the list of executives that left ICBC last week:

Reporting to the CEO:

.         Craig Horton, SVP Claims (up to 17 months' severance on a base salary of $274,700)

.         Donnie Wing, SVP, Corporate Affairs (up to 18 months' severance on a base salary of $241,600)

.         Fred Hess, VP, Licensing (up to 13 months' severance on a base salary of $231,300)

.         Jeff Schulz, VP, Marketing (up to 17 months' severance on a base salary of $201,200)

.         Ward Chapin, CIO (up to 14 months' severance on a base salary of $240,000)

Not reporting to the CEO:

.         Andre Beaulieu, General Counsel (up to six months' severance on a base salary of $200,000)

.         Shelley Russell, VP, Claims Programs and Planning (up to six months' severance on a base salary of $172,000)

 

 

ICBC says how much they pay in severance depends on several factors, including how fast a laid off employee finds new work. 

 

The insurance corporation says another 250 staff will also be trimmed, and the executive further reduced in 2013. 

 

ICBC says while the cuts will save them about $29 million dollars a year, the severance payouts for all of 2013 could equal $26 million.