Disclose executive compensation for a public sector organization

To increase the transparency and accountability of executive compensation across B.C.’s public sector, employers must disclose annually the total compensation for the CEO and top four executives earning a base salary of $125,000 or more.

The Public Sector Employers Act was amended in 2007/08 to require the disclosure of total compensation of these top five decision-makers within six months of the end of an organization’s fiscal year. Total compensation includes:

• Base salary
• Holdback
• Statutory and health benefits and pension contributions
• Other allowances and/or payments which such as
  • vacation payout
  • sick leave payout
  • vehicle allowance
  • paid parking
  • severance/salary continuance
  • retirement allowance
  • professional dues or fees
  • administrative leaves

Disclosures must include:

• An explanation of the employer's compensation philosophy
• The objectives of the compensation program and what it is designed to reward
• How the payment of salary holdbacks for the top five executives relate to the organization’s performance targets

Details of a contract of employment are public information, and the contract is considered void if it states that all or part of the contract is confidential.

Enforcement

The Public Sector Employers Act includes the following enforcement measures:

• Any compensation paid to an employee in excess of an approved compensation plan is a debt payable to government
• Severance payments in excess of the Act are also a debt payable to government
• Public sector employers have a maximum of one year to recoup payments made to employees that are in contravention of the Act
• If an employer fails to report a new or revised employment contract within 15 days of the contract being entered into or revised, the Minister may declare all or part of the contract void