TRANSLINK announced on Tuesday that it added more than $100 million in savings to its bottom line in 2014, while executive compensation dropped more than five per cent over the previous year.
TransLink’s record of strong fiscal management earned it a double-A credit rating again last year, and investor confidence enabled another $130 million to be raised in the bond market.
In addition to raising more than $1 billion in capital markets since 2010, TransLink has achieved $240 million in efficiencies over the past three years while keeping spending below inflation since 2010.
“Credit-rating agencies cite TransLink’s solid track record of saving money through aggressive cost cutting and revenue efficiencies,” said Cathy McLay, TransLink CFO and Executive Vice President Finance and Corporate Services.
“We are exceedingly careful with the funding entrusted to us, and since 2010 we’ve kept expenditures below the rate of inflation without making cuts to overall service levels.”
TransLink Interim CEO Doug Allen noted that in 2014, service complaints were down three per cent, and customers gave their transit service a rating of 7.6 out of 10.
“We were able to keep service levels high – despite no new funding,” said Allen.
“We achieved this by reallocating 52,000 hours of bus service to the busiest routes in growing communities across the region.”
Executive Compensation: Executive compensation decreased 5.2 cent over the previous year. Base salaries have been frozen since 2013, and executive vice presidents and presidents of the bus and rail companies all took a pay cut, with total compensation for each position between four and 12 per cent lower than the previous year.
Total expenditures: Expenditures were below the rate of inflation over the last five years.
(1.2 per cent compound annual growth rate of expenditures since 2010.)
Ridership: Ridership stabilized after a dip in 2013. TransLink moved 234.6 million revenue passengers on transit last year.
Capital improvements: Significant progress on major improvements to the SkyTrain system, which includes upgrades to aging stations to improve safety, security, accessibility and capacity.
Credit rating: TransLink’s double-A credit rating was maintained, and $130 million was raised through the bond market, bringing the total raised from investors to $1 billion since 2010, with money going toward better transit, roads and bridges at no cost to taxpayers.
Customer satisfaction: Customers rated transit service 7.6 out of 10, and overall service complaints were down three per cent, despite the SkyTrain disruptions in July 2014.
TransLink is releasing its 2014 results in advance of its Annual General Meeting on Friday, June 26, where it will review the 2014 financial and operational highlights.
A summary of total executive compensation in 2014 can be found below. All the full annual reports are available on the TransLink website at translink.ca/corporatereports:
|2013||2014||$ change||% change|
|Ian JarvisCEO||$468,015||$483,625||$15,610||+ 3.33%|
|Cathy McLayCFO & Executive Vice President Finance and Corporate Services||$383,905||$354,460||($29,445)||– 7.67%|
|Sandra HentzenExecutive Vice President Human Resources||$325,459||$285,790||($39,669)||– 12.19%|
|Bob PaddonExecutive Vice President Strategic Planning and Stakeholder Relations||$311,844||$299,192||($12,652)||– 4.05%|
|Haydn AchesonPresident & General Manager CMBC||$329,130||$302,441||($26,689)||– 8.11%|
|Doug Kelsey*President & General Manager BCRTC||$377,702||$355,442||($22,260)||– 5.89%|
* Formerly Chief Operating Officer – role was eliminated September 1, 2014