In 2014, the Broader Public Sector Executive Compensation Act, 2014 (BPSECA) was approved, which required all hospitals and other designated broader public sector organizations such as colleges, universities and school boards, to submit an executive compensation program to the government. The act was then amended in 2017 by Ontario Regulations 187/17 and the Program Directives. The provincial government has as its goal to create a framework to provide greater transparency, consistency and accountability across broader public sector executive compensation programs.
The framework applies to employees and office holders of designated employers, such as our hospitals, who are entitled to receive cash compensation of $100,000 or more in a calendar year and who are:
- The head of a designated employer, regardless of whether their title is the chief executive officer, president or something else
- The vice president, chief administrative officer, chief operating officer, chief financial officer, or chief information officer of a designated employer
- A person holding any other executive position or office with a designated employer, regardless of title
In the hospital sector, salaries for executives have remained frozen since 2010. The new Executive Compensation Framework allows for a review of salaries and other pay elements with certain criteria applied. Compensation is capped at no more than the 50th percentile of appropriate comparators, certain elements like signing bonuses and other perquisites are prohibited and the public must be consulted.
Effective April 12, 2018, the impact to Halton Healthcare is a 5% increase to the 2016/17 total executive compensation envelope. However, due to the growth of our organization in the past two years, the percentage represents the same amount of the operating budget at 0.6%. The new compensation program has been posted for public consultation and received final government and board of director approvals.