Facing longstanding questions over financial transparency, the Richmond Olympic Oval is in the midst of a “big shakeup” to its governance after its outgoing CEO’s annual salary was revealed to be more than $400,000, said City of Richmond Coun. Kash Heed.
The Oval was built as a speed skating facility for the 2010 Winter Olympics. After the games it was converted into a recreational centre, with two ice rinks, an indoor track and sport courts. It also hosts various sport and civic events.
Importantly, it was set up as a separate corporate entity with the sole shareholder being the City of Richmond, which contributed cash and land for its development.
Since being elected to council in 2022, Heed said he was introduced to concerns from the public and “internal staff” about the Oval’s arm's-length governance model; however, he was faced with “road blocks” to fully understand its operation.
Last September, Heed spearheaded a motion to have the Oval — which is subsidized by Richmond taxpayers and a provincial government trust fund — proactively release annual information on Oval staff compensation, as like any other municipal entity.
Heed said the motion came after staff revealed to council, upon request from some members, that the Oval’s CEO George Duncan was paid a base salary of $345,777 plus $57,110 in benefits and $12,126 in expenses, in 2023.
Duncan became the full-time Oval CEO after leaving his city manager role at the City of Richmond in July 2022. Duncan had overseen city hall since 1997 and was instrumental in negotiating with the Vancouver Olympic Committee to bring the Oval to Richmond, and subsequently served as a part-time Oval CEO.
“He had a very rich contract and based on his responsibility, in my humble opinion, he was overcompensated in comparison, for example, of other CEOs that run similar establishments,” said Heed in an interview with Glacier Media.
Duncan departed the Oval in July 2024. Oval spokesperson Brianna Fee said Duncan’s departure “was a voluntarily scheduled retirement.”
Heed, noting he was speaking on his own behalf, said he was not made aware of a scheduled retirement and understood council was not made aware either.
Not a 'long-term permanent position and salary' but a 'short-term premium rate': Duncan
Glacier Media reached out to Duncan to understand his perspective on his salary and contract.
Duncan confirmed, via email, the Oval's board approved his salary in 2021.
Duncan explained that his salary was predicated on a few factors, including overseeing COVID-19 pandemic recovery and that the role (after leaving his city manager position) was temporary and indeed he planned to retire in July 2024.
“It is important to recognize that in 2021 the CEO role and salary was not established as a long-term permanent position and salary. It was established as a short term (one to two years) with the pre-announced intention that the CEO position would be eliminated when I retired as the Oval Corporation would have returned to its pre-COVID steady state operations and the ongoing cost savings would easily offset the short-term premium rate."
Duncan added: “The financial success of the Oval coming out of the pandemic and up until mid-2024, plus the cost savings that will be realized from the elimination of two senior positions moving forward (if the efficiencies are sustained), are not being taken into consideration when the temporary remuneration that was offered for the temporary assignment are raised.”
Duncan suggested the board’s decision to hire him as full-time CEO was based on the value he provided to the Oval.
Comparing 2014 (around the time the Oval’s post-Olympic conversion was complete) to 2023, taxpayer subsidies have increased 45 per cent, from $5.5 million to $8 million and revenues have increased 48 per cent, from $6.9 million to $10.2 million.
The Oval claimed 1.3 million visitors in 2023, up from about one million in 2014.
Oval CEO salary exceeded that of PavCo CEO
In 2023, the Oval reported operating expenses of $19.2 million and revenues of $21.1 million, including $4.1 million from the Games Operating Trust Fund, $3.9 million from the City of Richmond and $10.2 million in membership dues, admissions and programs.
By comparison, in 2023, BC Pavillion Corporation (PavCo) paid its president and CEO Ken Cretney $336,731 and a total remuneration of $394,316. PavCo’s $136.6-million operating budget manages BC Place Stadium and the Vancouver Convention Centre.
Heed said he was concerned Duncan sat on the Oval's board of directors and that the 12-member board consisted of several longstanding members, with little turnover.
Since January 2024, the Oval’s board has been entirely replaced and reduced to just 10 members upon a council resolution stemming from a closed-door meeting and vote.
“That's unheard of in the corporate world,” said Heed.
Out went former board chair Dennis Skulsky, the former president of the BC Lions, who had been on the board since 2008. Replacing Skulsky in 2024 was local developer Kush Panatch.
Heed said council also resolved to permanently axe the role of CEO at the Oval, which continues to have managing director Gerry De Ciccio earning $227,501 and director of finance Rick Dusanj earning $181,796.
Longstanding Oval employee Shana Wagner, the former director of business development and administration, also departed the Oval in July 2024 after being paid $181,796 in 2023.
Heed said he understands Wagner’s position will not be replaced.
The Oval’s so-called “sunshine list” shows 35 employees compensated more than $75,000, including 15 compensated more than $100,000. Another 265 employees were compensated $5.5 million in total in 2023.
Last November, council also selected a new council liaison to the Oval board. After a six-year stint, Coun. Alexa Loo told Glacier Media via email she “asked to move on from the Oval board liaison position as I am currently working on more historical and heritage committees.”
When asked how Duncan’s salary was determined, Loo confirmed the decision was made by the past board, however she was not privy to the process as a non-voting member.
“A liaison position is just that, a liaison. As such, I was only in a position to inform the board of what the city was up to and sometimes make recommendations or suggest that something might be outside of the scope of what council envisioned for the Oval,” explained Loo.
Taking the Oval liaison reins from Loo last November was Coun. Michael Wolfe, who told Glacier Media he hopes council plays a greater role in Oval expenditure and policy oversight moving forward, given the public funds being directed to it. Wolfe said he will be relaying more information from the Oval to council moving forward.
Ex-board member defends contract
Glacier Media could not reach Skulsky but did connect with longtime and now former board member Peter German, a retired senior RCMP official now operating an anti-corruption think tank at the University of B.C.
German said Duncan was a “driving force” for the Oval and while he was not party to the board’s “compensation committee,” he opined that the payment was not out of line.
“I realize that the salary seems high for you or I, but the Oval is unique in that it straddles the municipal and the corporate worlds. In terms of the municipal world, there are various sources for CEO and CAO salaries, police chiefs, etc. and you will find total comp packages higher than what you quoted. If you venture into the corporate world, the sky is the limit,” stated German, via email.
Heed said he expects taxpayers and Oval users to be on the hook for a yet-to-be-disclosed “settlement package” for Duncan.
Separation of Oval and city staff
Heed said another important policy move initiated by council is ending a compensation policy for city staff conducting work for the Oval.
For some time, Duncan, most notably, would be compensated by the Oval for any of the part-time CEO work he did there, while also acting as city manager.
Heed said the policy was “convoluted” and made it difficult for elected officials to track spending.
“There were concerns with the amount of money that was being paid to staff at the Oval, including Mr. Duncan. The new board came in, and the new board moved swiftly. The policy changes that are being brought in and will be brought in going forward will bring in more accountability and more transparency,” Heed asserted.
Heed also said council ought to explore the value of the Richmond Olympic Experience, dubbed ROX, an Olympic-sanctioned museum inside the Oval.
It was Duncan who was instrumental in setting up ROX, which features sport simulation games.
Prior to establishing ROX, Duncan took numerous taxpayer-funded trips abroad to study the museum model.
In 2014, the Oval, a subsidiary of the city, created a subsidiary company of its own called VROX Sport Simulation Ltd., a Victoria-based company, which was then 50 per cent owned by the Oval. Its five directors, four of whom are Oval executives, included Duncan and Wagner (then named Shana Turner). The non-Oval director was Robert Stanners, who operated a virtual reality company, VRX Advanced Simulators.
At the time, VROX's financial details were shielded from the public to accommodate the private partner’s rights, according to the Oval.
Loo said while the new board is exploring Oval operations she is “confident that operations will continue much the same as they had, providing great sport, recreation and competition opportunities for residents of Richmond.”
