Major payouts to health authority CEOs seem part of a trend, U of M business instructor says
The former CEO of Manitoba Shared Health earned nearly $1 million last year, while her counterpart at Winnipeg's health authority made more than $725,000, despite the fact they both only worked one mo. . .
The former CEO of Manitoba Shared Health earned nearly $1 million last year, while her counterpart at Winnipeg's health authority made more than $725,000, despite the fact they both only worked one month. Lanette Siragusa, who rose to public prominence as Manitoba's chief nursing officer during the COVID-19 pandemic, was replaced as the head of Manitoba's provincial health authority by interim CEO Chris Christodoulou early last year, while Mike Nader, who led the Winnipeg Regional Health Authority, was replaced by interim leader Jane Curtis. Siragusa earned $988,520. 93 in compensation in 2025, while Nader earned $726,339. 83, mandated public sector compensation disclosure documents say. Siragusa earned $384,425. 57 in 2024, and Nader earned $388,079. Both had been appointed to their roles by the previous Progressive Conservative government — Siragusa in 2023 and Nader in 2021. The provincial government did not provide someone to talk about the payments but emailed a statement. "As this relates to an employment contract signed in 2022 under the former government, we are required to operate within the confines of that contract and its legal obligations," a ministerial spokesperson said. "Our government remains focused on responsible fiscal management across the health system. "Mike Nader earned compensation over $725,000 as president and chief executive officer of the Winnipeg Regional Health Authority for a month in 2025. (CBC)Shared Health also sent a short statement about Siragusa's compensation to the CBC via email. "While we cannot discuss individual salaries and work agreements, we can share that the total compensation figure includes both regular earnings as well as certain legislative and contractual payments, such as vacation and severance, payable at the time of her departure from the organization," it said in part. Sean MacDonald, an instructor at the Asper School of Business at the University of Manitoba, said the high payments were "almost certainly" buyouts of both CEOs' contracts. Newly elected governments have always replaced boards of directors of large agencies, such as health authorities and Crown corporations, to bring them into philosophical and strategical alignment with the government's objectives — but more recently, they have also replaced CEOs, MacDonald said. "This is an extremely expensive business practice, as we're seeing, to be paying out whatever is left on the contract of these senior executives. "Sean MacDonald says top-ranked executives must be paid well, but the government could set more clear performance expectations. (Submitted by Sean MacDonald)The payments are growing in part because salaries are rising, but also, MacDonald suspects, because CEOs know they'll likely lose their positions if the government changes. "Anybody that's considering working as a senior executive for a health authority is probably going to be negotiating a very long-term contract because … their tenure could be abbreviated because governments are getting rid of the CEOs and putting in their own people," he said. Governments could make more effort to work with the executives in place when they come to power, he said, although he understands the desire to put their own stamp on these big organizations. "It may be inevitable that, you know, the government changes, they want to change some of the CEOs. "While MacDonald understands why the payouts are happening, and he believes governments have to pay high wages to the people who run complex organizations, he thinks governments can work to lessen the burden. "I think these contracts need to have a little more teeth in terms of performance measure," MacDonald said. If governments put specific, quantitative performance measures in contracts, and they're not met, then CEOs can be dismissed with cause, and the buyouts won't be necessary, he explained. "I think that would also enhance the accountability of the CEOs of these big organizations," he said. If buying out contracts of the leaders of Crown corporations is now normal for new governments, it will be expensive, he reiterated. "They're locking in longer-term contracts, so the buyouts will be greater. That's one of the things the CEOs do," he said. "Some of it is inevitable, but some of it, I think, governments could work to mitigate if they sign better contracts. "