This fall Bill 8 has been swiftly moving through the stages of the legislative process in Ontario. It is An Act to promote public sector and MPP accountability and transparency by enacting the Broader Public Sector Executive Compensation Act, 2014 and amending various Acts. It includes new legislation that would be known as the Broader Public Sector Executive Compensation Act, 2014 ("Act").
"Designated employers" who are captured under the Act
include hospitals, school boards, universities, colleges and
community care access corporations. "Designated
executives" who would be affected include those who are
entitled to receive or could potentially receive at least $100,000
in compensation in a calendar year, and who are (i) the head of the
designated employer, (ii) vice president or other executive,
regardless of title, (e.g., chief administrative officer, chief
operating office, chief financial officer or chief information
officer) of the designated employer, or (iii) director of education
or a supervisory officer of a school board.
If passed, the government would have authority to make regulations
establishing "compensation frameworks". It would also
have the power to issue directives to designated employers
requiring them to provide detailed compensation information
regarding their designated executives.
The compensation frameworks may provide for and limit the
compensation provided to designated executives. Compensation
includes salaries, salary ranges, benefits, perquisites,
discretionary and non-discretionary payments, payments on
termination, performance plans, incentive plans, bonus plans,
allowances and other forms of remuneration.
Earlier this week, the government introduced a new amendment that
effectively grandparents existing contracts for three years after
the introduction of sector specific compensation frameworks.
If the proposed legislation is passed and proclaimed into force, we
expect the government to issue a directive to collect
compensation-related information from broader public sector
employers. We also expect that it would begin consultation with
impacted stakeholders as it analyzes the compensation
information.
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