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Brampton’s Severance Spending Worries Former Employees Lead Earnings

by News Magazine
April 13, 2024
in Brampton, Canada, Local, Mississauga, Ontario, Ottawa, Toronto, World
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Recent revelations from Ontario’s Sunshine List shed light on Brampton’s concerning severance spending, with two former employees, who were terminated in 2018 and 2022 respectively, emerging as the city’s highest-paid individuals last year. David Barrick, dismissed as chief administrative officer (CAO) in 2022, received over $267,000 in severance along with benefits, while his predecessor, Harry Schlange, ousted in 2018, consistently earned nearly $300,000 annually until 2021. Their substantial payouts, coupled with the extended duration of Schlange’s severance, have drawn scrutiny, prompting discussions about the precarious nature of CAO positions and the political dynamics influencing such roles.

Employment lawyer Athanasios Makrinos noted the typical inclusion of “healthy severance packages” for CAOs due to the volatility inherent in these positions, which are subject to the decisions of elected officials. While such severance agreements often remain under the $100,000 threshold to avoid Sunshine List disclosure, concerns persist regarding transparency and fiscal responsibility. Additionally, Brampton stands out among neighboring municipalities, with former CAOs being the sole recurring entries on the Sunshine List post-termination.

Mayor Patrick Brown acknowledged Schlange’s contractual entitlement to severance, yet deemed it “too generous,” emphasizing subsequent severance packages aligning more closely with private sector standards. A city report highlighted a significant portion of the $38 million severance expenditure between 2010 and 2021 attributed to senior leadership turnovers, particularly following administrative restructuring in 2016. Council members, including Coun. Martin Medeiros, acknowledged past decisions contributing to the financial burden and emphasized ongoing efforts to balance competitiveness with fiscal prudence, aiming to retain talent while curbing excessive spending.

As Brampton navigates its financial challenges, scrutiny over severance practices underscores the importance of accountability and strategic management in public sector expenditures.

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