Skip to Main Content
  1. Home
  2. Board
  3. Finance
  4. Executive Compensation
  5. Executive Compensation – Frequently Asked Questions

Executive Compensation – Frequently Asked Questions

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.  Many school boards have had difficulty attracting and retaining executive talent due to salary compression caused by an executive compensation freeze for more than five years 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 Upper Grand 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.  The UGDSB is proposing a 5% increase to compensation costs for executives.

Frequently Asked Questions

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, to ensure a responsible, transparent, and consistent approach to setting executive compensation in the broader public sector.  School boards were to include in the Executive Compensation Program at least 8 comparator organizations (see page 7 of the UGDSB Proposed Executive Compensation Program – Proposed Comparator Organizations).  The regulations specify the establishment of “compensation caps” at a maximum of the 50th percentile of the organization’s comparators.

How was the Executive Compensation Framework 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.

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 to ensure responsible executive compensation management in the Broader Public Sector.

What positions will the Executive Compensation Program be applied to?

At our school board, the Executive Compensation Program applies to the following job classes: 

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.

How will input from the public consultation be used?

We will be reviewing all feedback and will provide a summary of your feedback to the Ministry of Education for its consideration.  The Board of Trustees will consider approving this Program once it receives final approval from the government.  Due to the volume of responses, we are unable to provide individual responses to submissions.

Where can I find more information about executive compensation in the Ontario broader public sector and the legislation?