Executive Compensation program
The Government of Ontario's Broader Public Sector Executive Compensation Act of 2014(BPSECA) requires broader public sector designated employers, including school boards, to develop Executive Compensation programs to ensure responsible, transparent and consistent approaches to managing executive salaries.
To guide the Peel board in finalizing its proposed executive compensation program, trustees sought input from staff, parent, student and community members. Input was collected between Nov. 24 and Dec. 24, 2017. You can review the final programhere.
School boards are required by provincial legislation to develop Executive Compensation programs to ensure a responsible, transparent and consistent approach to managing executive salaries. Some school boards have had difficulty attracting and retaining executive talent due to salary compression caused by an executive compensation freeze and increasing salaries of other employee groups through collective bargaining. Peel District School Board executive-level salaries have been frozen for nine years.
An Executive Compensation Steering Committee comprised of the four publicly funded trustee associations, supervisory officers and directors of education associations, and with the guidance of an external consultant Mercer (Canada), created a provincial executive compensation framework for use by all 72 publicly funded school boards to develop their local executive compensation programs.
A competitive, fair and responsible Executive Compensation program is vital to attract and retain talented and innovative leadership to ensure continued progress in student achievement, success and well-being. Our Executive Compensation program complies with the legislation and balances the need to responsibly manage compensation costs with the need to attract and retain the executive talent we seek.
Frequently asked questions
Q. What are the requirements of the Broader Public Sector Executive Compensation Act (BPSECA) and the Ontario Regulation 304/16 – Executive Compensation Framework?
The government introduced the Broader Public Sector Executive Compensation Act(BPSECA) in 2014 and Ontario Regulation 304/16 - Executive Compensation Framework, which requires Ontario broader public sector designated employers to develop an Executive Compensation program, including an Executive Compensation Framework, to ensure a responsible, transparent and consistent approach to setting executive compensation in the broader public sector.
Q. What is an Executive Compensation program?
An Executive Compensation program sets out the rationale and compensation parameters for executive level positions. This approach balances the need to manage compensation costs with school boards' need to attract and retain executive talent.
Executive Compensation programs must meet the intent and goals of the Ministry of Education and Treasury Board Secretariat to ensure responsible executive compensation management in the broader public sector.
Q. How was the Executive Compensation program developed?
In consultation with Mercer (Canada), an independent consulting firm that specializes in executive compensation, an Executive Compensation Steering Committee comprising the four publicly funded trustee associations, supervisory officers and directors of education associations developed the Executive Compensation Framework used by all 72 publicly funded Ontario public school boards.
Individual school boards then used the framework to create local Executive Compensation programs for executive level positions.
Q. What positions will the Executive Compensation Program be applied to?
At our school board, the Executive Compensation Program applies to the director of education, associate directors and supervisory officers.
Q. Why is the Executive Compensation program needed?
Executive compensation has been frozen for nine years, while principal and teacher salaries have increased over the same time period. This has caused compensation compression and has made it difficult for school boards to attract and retain executive talent.
Compensation inequities across the province are also presenting increasing challenges for school boards to attract and retain the innovative and talented leadership needed to ensure continued progress in student achievement and success.
Q. Why are you consulting?
Ontario Regulation 304/16 - Executive Compensation Framework requires designated public sector employers to consult with the public. Local Executive Compensation programs will be posted on school board websites for a period of 30 days. Consultation will take place during this time.
Q. How will input from the public consultation be used?
All input from the public consultation will be considered in the review of the board's Executive Compensation program. Based on the input received, we will be better positioned to further refine and implement our Executive Compensation program.
Q. How can school boards justify executive salary increases?
School boards require highly skilled and highly principled leaders to lead their organizations in providing, promoting and enhancing public education. Student achievement, success and well-being is a critical public service and requires innovative leadership to further advance the current public education system.
Q. Where can I find more information about executive compensation in the Ontario broader public sector and the legislation?
Additional information about the Regulation can be found here. Additional guidelines for the Framework can be found here.