Salary caps hit Ontario’s broader public sector

But critics question logic behind framework
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 10/03/2016

Looking to ensure executive compensation in the broader public sector is “accountable and transparent,” the Ontario government is implementing a new framework that includes salary caps and performance-related payments for hospitals, universities, colleges, school boards and government agencies.

But the move is receiving mixed reviews, with experts questioning the impact on boards, compensation strategies and recruitment.

“Do we need it? Honestly, I don’t think so because I think this kind of regulation is sold as an answer to high-profile scandals… with the underlying assumption there is a systemic issue in top executives in public institutions in Ontario related to their compensation. And I think this is wrong — there is no evidence of any systemic issue,” said Bertrand Malsch, associate professor and distinguished faculty fellow in accounting at the Smith School of Business at Queen’s University in Kingston, Ont. “I tend to believe that there are only a few bad apples.”