Public Sector Employers' Council

2007 - 2008 Executive Compensation Disclosure

Disclosure of executive compensation across British Columbia’s public sector has been expanded to increase transparency and accountability. Employers are now required to move beyond simply reporting what was paid to a more detailed explanation on all the elements that make up the compensation package for the individual. Disclosures must include an explanation of the employer's compensation philosophy, the objectives of the compensation program and what it is designed to reward, and how the performance payments for the top five executives relate to the organization’s performance targets. These disclosure practices are consistent with good governance practices that have been adopted by publicly-traded corporations across North America.

The enhanced disclosure requirements apply to chief executive officers and the next four highest paid/ranking executives, where these positions hold an annual base salary of $125,000 or more. They must be proactively disclosed on the organization's website. This executive compensation disclosure is in addition to the more basic salary disclosures employers make under the Financial Information Act for employees earning $75,000 or more.

The Public Sector Employers Act permits the chief executive officer of the Public Sector Employers Council to prepare and publish reports with respect to that information. Accordingly, the following is a report of British Columbia's public sector executive compensation for the employers' most recent fiscal years.

Health Sector ( Fiscal Year April 1, 2007 – March 31, 2008)

B.C. Heath Authorities

Health Authorities provide leadership to complex medical organizations with multiple facilities and a broad continuum of care. Their operating budgets can be in the billions of dollars. Compensation levels are generally set at the 50th percentile of relevant labour market comparators.

Other Health Employers ( Fiscal Year April 1, 2007 – March 31, 2008)

There is a variety of other health employers whose executives provide leadership to medical facilities or small to medium size health organizations. Their compensation levels are based upon relevant labour market comparators.

Education Sector

K-12 Public School Districts (Fiscal 2007-2008 for the year ending June 30, 2008)

Boards of Education are solely responsible for determining the total compensation package for the position of Superintendent of Schools and Directeur General. The B.C. Public School Educators’ Association administers a sectoral compensation management plan for all other exempt positions with the objective of enabling boards to attract and retain high quality personnel through the establishment and maintenance of rational and defensible total compensation structures. Public school districts have a fiscal year that ends on June 30 and will disclose executive compensation later in the year.

 

Universities ( Fiscal Year April 1, 2007 – March 31, 2008)

B.C.’s universities range in size and in some cases include medical schools and research-revenue generation arms. A key factor in recruitment and retention of presidents and senior administrators of these institutions is ensuring that their compensation is situated within relevant labour market comparators and in particular competitive with similar Canadian universities.

Colleges and Institutes (Fiscal Year April 1, 2007 – March 31, 2008)

B.C.’s colleges and post-secondary institutions provide a range of programs that prepare adult learners for post-secondary studies and provide courses and programs in trades, vocational, career technical and academic studies leading to certificates, diplomas, associate degrees and applied degrees. The presidents and senior administrators provide leadership to post secondary education institutions ranging in student enrolment from several hundred up to 15,000. A key factor in their compensation is their competitiveness with similar Canadian institutions.

Crown Corporations and Agencies (Fiscal Year Stated Below)

B.C.’s Crown corporations and Agencies provide a vast array of services to the B.C. public. In some cases they are large commercial operations such as BC Hydro and ICBC, in other cases they are a means to provide cost-effective services to citizens. Their executives come from various fields of endeavour, but in most cases their relevant labour markets are similar organizations in the public and private sector in Canada.

Public Service

B.C.’s public service is involved in a wide array of activities including such things as direct services to the public to public policy. Their executive compensation approach is intended to provide staff with a competitive compensation package to retain a qualified, diverse and engaged executive capable of achieving a high level of performance.

Community Social Services Sector

B.C.’s social service sector strives to offer compensation that neither leads nor lags relevant labour market comparators.