Calgary Alberta - There was a new face at the top of Canadian Pacific Railway (CP) in 2017, but the pay grade did not change.
 
Keith Creel, president and CEO of CP, took in $20.1 million in total compensation last year as the highest-paid executive among Calgary's publicly traded companies, according to Postmedia's annual survey of executive compensation.
 
Creel, who had been president and chief operating officer, took over from Hunter Harrison as chief executive of the railway giant in January 2017.
 
Harrison, who left the company to become CEO of Florida-based CSX Corp. last year but died in December, was the highest-paid Calgary business leader in both 2015 and 2016.
 
He still received $6.8 million from CP last year.
 
In a statement, CP said Creel helped shepherd the company to a record-breaking year "by nearly every financial performance measure" as the company posted $2.8 billion in operating income in 2017.
 
"As one of the most highly regarded railroaders in North America, during a time of significant change within the executive ranks of the Class 1 railroads, the appropriate level of compensation for Mr. Creel is imperative to long-term shareholder value generation," the statement reads.
 
The railway said the majority of Creel's pay is variable, or at risk, with a significant portion tied to the value of CP's shares.
 
He received a one-time retention grant of performance stock options valued at nearly $8 million.
 
Creel had a $1.4 million base salary and $2.4 million in performance bonuses, with the remainder coming from shares and stock options.
 
CP did make changes to its executive compensation model in 2016, including limiting the use of the corporate plane, in response to shareholder concerns.
 
Arden Dalik, a senior partner with the firm, said CP has maintained that its company performance justifies the CEO pay packages.
 
"From a financial return point of view, I think their shareholders would say they've gotten good return on their investment in paying Hunter Harrison and his heir apparent high levels of compensation," she said.
 
Dalik noted that in both Canada and the United States the appearance of active "say-on-pay" movements among shareholders is generally linked to the company's bottom line.
 
High remuneration levels for the corner-suite occupiers are generally accepted by shareholders as long as the business is doing well.
 
"I can imagine things could get ugly and turn fast if the returns take more than a short downward trend," she said.
 
CP did see a slump in profits in the first quarter of this year thanks to severe winter weather and the threat of strike action, which has since been resolved.
 
Author unknown.

OKthePK Joint Bar editor:  Article abridged - other high-earning Calgary CEOs removed.