OCDSB’s Proposed Executive Compensation Program
In 2014, the Government of Ontario began the process of developing public sector compensation frameworks to ensure a transparent and consistent approach to executive compensation. This applies to all Ontario public sector designated employers, such as universities, colleges, hospitals and school boards, including the Ottawa-Carleton District School Board.
All 72 Ontario Public School Boards worked together to develop an Executive Compensation Framework which would ensure compliance with this legislation for the K-12 education sector. The sector framework was approved by the Ministry of Education and Treasury Board Secretariat. Using the approved framework and in consultation with the Government of Ontario, the OCDSB has developed a proposed Executive Compensation Program.
In the education sector, a competitive, fair, and responsible Executive Compensation Program is vital for attracting and retaining the talented, innovative leadership required to ensure continued progress and success in advancing student achievement for all. The OCDSB Board of Trustees recognizes the importance of developing a fiscally responsible compensation program that is fair, consistent, reflective of the unique complexities of the school board market as well as the external market, and provides recognition for the professional competencies, complexity of work and workload demands of our senior management team. In reviewing executive compensation, the Board was guided by the following principles:
- Fair and market based compensation is essential to the recruitment and retention of a leadership team in a high functioning organization;
- The provincial framework is an important step towards equity in executive compensation for Ontario School districts;
- Implementation of the executive compensation framework must be undertaken in a reasonable timeframe that is within the life of the Crown approved framework, with recognition of the unique circumstances of local boards to achieve the intended outcome and ensure equity;
- The current compensation of the executive team at the OCDSB is out of alignment with the framework and with other Ontario school districts and creates an unacceptable business risk in terms of recruitment and retention of members of the senior leadership team.
As part of its due diligence, the Board engaged a 3rd party to conduct an independent review of OCDSB executive salaries relative to local Ottawa comparators and to validate the appropriateness of the proposed provincial framework salaries. The sample comparators included mid-size and large post-secondary education institutions, the federal public service, the municipal sector, major social services agencies and direct comparator school districts.
This information was instrumental in helping the Board to develop a compensation framework which is fair, competitive, responsible, and transparent.
Q. 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 (TBS) to ensure responsible executive compensation management in the Broader Public Sector.
Q. 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, including an Executive Compensation Framework, to ensure a responsible, transparent, and consistent approach to setting executive compensation in the broader public sector.
Q. How was the Executive Compensation Program 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. The local framework was developed based on this sector framework.
Q. What positions will the Executive Compensation Program be applied to?
The Executive Compensation Program applies to all Supervisory and Executive Officers which includes the Director of Education, Associate Director, Superintendents of Instruction, Chief Financial Officer, Superintendent of Human Resources and Executive Officer.
Q. Why is the Executive Compensation Program needed?
Recently, there has been difficulty attracting and retaining executive talent at school boards, due
to the compensation compression resulting from executive compensation freezes and increasing Principal and Teacher salaries through negotiations.
Q. Why are you seeking community feedback?
Community input is an important step in this process. 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.
Q. How will the community feedback be used?
All input from the community feedback will be considered in the review of the Executive Compensation Program. Based on the input received, we will be better positioned to further refine and implement our Executive Compensation Program. We will also be better positioned to meet the requirements of this new legislation.
Q. How can school boards justify executive salary increases when schools are being closed across the province?
Closing a school is one of the most difficult decisions school boards must make. These are not easy decisions nor are they taken lightly. School boards require highly skilled and highly principled leaders to lead the organization in providing, promoting, and enhancing public education. Student achievement and success is a critical public service and requires innovative leadership to further advance the current public education system.
Q. Where can I find more information about executive compensation in the Ontario broader public sector and the legislation?
- Additional information about the Regulation can be found using this link: https://www.ontario.ca/laws/regulation/r16304
- Additional guidelines for the Framework can be found using this link: https://www.ontario.ca/page/executive-compensation-framework-guide