Background:
School boards are required by provincial legislation to develop Executive Compensation Programs to ensure a responsible, transparent, and consistent approach to managing executive salaries. School boards have had difficulty attracting and retaining executive talent due to salary compression caused by an executive compensation freeze since 2010/2011 and increasing salaries of other employee groups through collective bargaining. A competitive, fair, and responsible Executive Compensation Program is vital for attracting and retaining talented and innovative leadership to ensure continued progress in student achievement and success. The Halton District School Board’s 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.
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 in our Board. This approach balances the need to manage compensation costs with our need to attract and retain the executive talent we seek. In addition, our Executive Compensation Program meets the intent and goals of the Ministry of Education and Treasury Board Secretariat (TBS) 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 for use by all 72 publicly-funded Ontario Public School Boards.
Q. What positions will the Executive Compensation Program be applied to?
At our school board, the Executive Compensation Program applies to:
- Director of Education
- Associate Director
- Supervisory Officers
- Executive Officers
Q. Why is the Executive Compensation Program needed?
Recently, there has been difficulty attracting and retaining executive talent at school boards, due to the compensation compression resulting from executive compensation freezes and increasing Principal and Teacher salaries through negotiations.
Q. How long have the executive salaries been frozen at the Halton District School Board?
The salary of the Director of Education has been frozen since 2010. Salaries for the Associate Director, Supervisory Officers and Executive Officers have been frozen since 2011.
Q. Why are you consulting?
Ontario Regulation 304/16 – Executive Compensation Framework requires designated public sector employers to post their Executive Compensation Program on their public website for a period of 30 days for consultation.
Q. How will input from the public consultation be used?
All input from the public consultation will be considered in the review of the Executive Compensation Program. Based on the input received, we will be better positioned to further refine and implement our Executive Compensation Program. We will also be better positioned to meet the requirements of this new legislation.
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.