New regulation came into force yesterday which sees the province limit executive compensation.
New regulation came into force for Ontario yesterday as the province pushed forward with a new framework which caps executive compensation in the public sector.
The framework regulation applies to all designated employers under the Broader Public Sector Executive Compensation Act, 2014 and limits salary and performance-related payments for hospitals, universities, colleges, schools boards and government agencies.
Under the new regulation, salary and performance-related payments for designated executives cannot exceed the 50th percentile of appropriate comparators and prohibits signing bonuses, retention bonuses, cash housing allowances and pay in lieu of perquisites.
"This balanced approach will ensure that broader public sector organizations are accountable for compensation decisions and are able to attract and retain the necessary talent to deliver high quality public services while managing public dollars responsibly,” said Liz Sandals, president of the Treasury Board.
As part of this process, employers will be required to consult with the public when determining executive compensation programs and to post program details to their websites. Employers will be required to submit reports attesting that the compensation for their designated executives complies with the framework. Failure to complete this process could lead to penalties.
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The framework regulation applies to all designated employers under the Broader Public Sector Executive Compensation Act, 2014 and limits salary and performance-related payments for hospitals, universities, colleges, schools boards and government agencies.
Under the new regulation, salary and performance-related payments for designated executives cannot exceed the 50th percentile of appropriate comparators and prohibits signing bonuses, retention bonuses, cash housing allowances and pay in lieu of perquisites.
"This balanced approach will ensure that broader public sector organizations are accountable for compensation decisions and are able to attract and retain the necessary talent to deliver high quality public services while managing public dollars responsibly,” said Liz Sandals, president of the Treasury Board.
As part of this process, employers will be required to consult with the public when determining executive compensation programs and to post program details to their websites. Employers will be required to submit reports attesting that the compensation for their designated executives complies with the framework. Failure to complete this process could lead to penalties.
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