Progress made on controlling executive compensation
July 23, 2013 - 2:56 PM
VICTORIA - The Province of B.C. has released its annual disclosure of public-sector executive compensation, showing that measures announced last year to constrain pay, perks and benefits are starting to take effect, Finance Minister Michael de Jong announced today.
Since July 2012, when the new policy on Crown corporation executive compensation was announced, progress includes:
* Total compensation for the top 10 executives is down this year by 2.8 per cent and incentive pay for the top 10 is down 0.9 per cent, despite generally more positive business results compared to last year.
* On average, base salaries and total compensation for disclosed executives is down by about two per cent (-1.74 per cent and -2.06 per cent respectively).
* The number of disclosed executives receiving incentive pay is down from 97 to 85, or about 12 per cent.
Crown corporations continue to make the transition to full compliance with the policy. Many Crown corporations were already in compliance with the policy or required only minor adjustments to their arrangements.
In conjunction with the release of Public Accounts 2012-13, this is government's sixth annual executive compensation disclosure, which includes the total compensation of the CEO and top four decision-makers with a base salary $125,000 or above for each public-sector employer in the preceding fiscal year. B.C. is a leader in best practice of compensation disclosure among provinces.
* In July 2012, government announced a new policy on Crown corporation executive compensation.
* The policy was designed to balance the need to attract experienced and skilled individuals with government's commitment to ensuring Crown compensation practices reflect British Columbia's best interests.
* Key elements of the policy include:
- Freeze executive salaries in all Crown corporations subject to the Public Sector Employers Act.
- Move to eliminate executive bonuses and replace them with holdbacks of no more than 20 per cent of base salary.
- Reduce total base salary for senior executives on appointment of replacements by 10 per cent.
- Limit holdbacks to executives.
- Eliminate special perquisites, with the exception of work-related vehicle allowances, for executives.
- Streamline reporting structures.
News from © InfoTel News Ltd, 2013