Comparators in spotlight with Executive Compensation Framework

Ontario’s new rules have public sector working hard to justify C-suite numbers
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 03/06/2017
Electricity CEO
Jean-Bernard Levy, CEO of France’s state-owned electricity company EDF, in Paris on Feb. 14. Levy makes considerably less than the suggested CEO salary for Ontario Power Generation, despite his company having much larger revenues and much more employees, according to Bertrand Malsch, associate professor and distinguished faculty fellow in accounting at the Smith School of Business at Queen’s University in Kingston, Ont. Charles Platiau (Reuters)

When the Ontario government announced a new Executive Compensation Framework last fall, broader public sector employers knew they’d be in the hot seat when it came to justifying their numbers.

And it didn’t take too long — after employers such as Ontario Power Generation started posting proposals earlier this year, the government asked them to try again after concerns were raised about the salary comparators they were using.

Executive compensation in the public sector has been restrained under the Broader Public Sector Accountability Act, 2010, since 2012. All elements of compensation were frozen, including base salaries, and the freeze is in effect until employers post final executive compensation programs on their public websites.