Public Sector Executive Compensation Disclosure Statements
In British Columbia, organizations defined by the Public Sector Employers Act are statutorily required to disclose all compensation that is paid to the Chief Executive Officer (CEO) and the next four highest ranking or highest paid executives with decision-making authority earning an annualized base salary of $125,000 or greater during a fiscal year. This generally applies to:
- Crown corporations and agencies
- Post-secondary institutions
- Research universities
- Health authorities
- BC Public Service (core government)
- K-12 school districts
The annual executive compensation disclosure is based on the best practice of complete transparency and therefore, full accountability for compensation paid to executives in public sector organizations in British Columbia. The annual disclosure is a requirement that may rely on accounting methods, but is grounded in the principle of transparency. It is an organization’s responsibility to provide the public with a clear, concise and understandable description of the link between pay and performance for its senior executives in key decision-making positions. The organization’s board chair is accountable for the accuracy and compliance of the disclosed compensation information through a signed attestation that is publicly available.
These reporting requirements are modeled on those of the Canadian Securities Administrators’ requirements of publicly-traded companies.
Disclosure requirements are met when the following elements are included in an organization’s submission statement:
- An explanation of the employer's compensation philosophy
- A summary compensation table that including detailed notes
- A signed attestation from the board chair which is a publicly available declaration confirming the veracity of disclosure
These disclosure requirements may be in addition to other reporting requirements, such as those under the Financial Information Act (FIA). The FIA requires public bodies and public corporations to prepare a statement of financial information for all employees who earned more than $75,000 that includes the total cash compensation and total amount paid for the employee's expenses within six months after the end of the corporation’s fiscal year.
Organizations Out of Scope
Organizations that do not meet the definition of a public sector employer under the Act include:
- BC Investment Management Corporation
- BC Pension Corporation
- BC Ferry Corporation
With the exception of the BC Ferry Corporation and the British Columbia Investment Management Corporation, these agencies are required by the Financial Information Act to disclose compensation annually.