This winter may have an extra little chill in store for Canadian executives.

A new survey indicates 41 per cent of Canadian companies have imposed, or plan to impose, salary freezes this year, with senior executives the most likely targets.

The consulting firm Towers Perrin surveyed 246 Canadian organizations and found lower profit is responsible not only for salary freezes: 54 per cent of companies also plan to reduce bonuses, and some will pay no bonuses at all.

"Compensation planning is particularly challenging during economic uncertainty — it is a fine balance between cutting costs in the short term while safeguarding the organization's talent," Fiona Macdonald, managing principal, Towers Perrin said in a release.

BANKERS TAKE A CUT

RBC’s Gordon Nixon

Will receive $3.8 million this year, down from $10.9 million last year. He declined to take almost $5 million in stock compensation.

Bank of Nova Scotia’s Rick Waugh

Pay cut to $7.5 million, compared with $10.1 million the previous year. His base salary was unchanged at $1 million.

CIBC’s Gerald McCaughey

Was eligible for $12.96 million in compensation. He will forgo some shares and other compensation. He took home about $5.3 million for 2007, compared with $9.1 million the year before.

Bank of Montreal’s Bill Downe

Received just under $6 million last year, up from $5.5 million in 2007. However, he’s decided to forego compensation valued at $4.1 million for this year.

On Monday, four of Canada’s banks said their chief executive officers agreed to give up more than $15-million in compensation (see sidebar).

“The decision to reduce paycheques is an astute move in the current economic climate, said Laura O'Neill, director of law and policy at SHARE, a shareholder rights group based in Vancouver.

"They are obviously trying to do something to address what we can only characterize as public outrage around these issues," she said.

Laurence Booth, a professor at Rotman School of Management, said the move makes the bank chiefs look more reasonable.

"I think it's probably an optics move, more than anything else," Booth said. He thinks the executives will take their biggest hit from forfeiting stock options, which he expects will be especially lucrative in the next few years when banks' stocks start to recover.

The Towers Perrin survey found only seven per cent of the companies surveyed made significant cuts in staff, although 18 per cent are considering major layoffs. Another 74 per cent are considering hiring freezes.

It isn’t all about cutting back. The survey says 61 per cent of companies surveyed are concerned about losing some of their best talent. So 38 per cent of those surveyed are considering targeted salary increases to their most essential employees.

Royal Bank CEO Gordon Nixon turned down almost $5 million in stock compensation.Royal Bank CEO Gordon Nixon turned down almost $5 million in stock compensation. (CBC)As well, 22 per cent are considering higher bonus payouts, another 22 per cent are considering cash retention awards, and 24 per cent are considering retention awards in stock. And 29% of companies are contemplating changes to their long-term incentives, again with the goal of retaining employees.

The Tower Perrin study also found early retirement is now just a fantasy for many professionals. The drop in the stock market decimated many people's individual personal savings.

“Freedom 90 has replaced Freedom 55,” said MacDonald. “Decisions made now on workforce planning and compensation will have a very real and dramatic impact down the road."

With files from Canadian Press