Detailed information on total compensation for senior public sector executives, demonstrates the effectiveness of ongoing measures to increase affordability, transparency and accountability in public sector compensation.

The total compensation is up slightly by 2.3% in 2015-16 compared to 2014-15, primarily because a number of new executives were only in their position for part of the 2014-15 year. The value of holdbacks paid declined by 16% compared to the previous year, partly reflecting business objective results.

The data also show a downward trend in total compensation for executives across the public sector, with an overall reduction of 2% compared to when it peaked in 2013-14, and a reduction of 31.5% in the value of holdbacks paid compared to that same year.

In July 2012, government revised its policy on executive compensation in Crown corporations, including measures to replace bonuses with a non‐pensionable holdback tied to financial and business results. Since the introduction of the 2012 executive compensation framework for Crown corporations:

• the number of executives receiving holdbacks or bonuses has fallen by 26%, compared to 2010-11.
• the total amount of holdbacks and bonus payments has dropped by 50%. 
• the average amount of holdback or bonus has decreased by 39%.
• 25% of executives now receive performance-based compensation, compared to 36% in 2010-11.

After a four-year wage freeze for public sector managers and executives and the implementation of new frameworks to manage consistent approaches to public sector compensation, government is now in a position to give public sector employers more flexibility to manage compensation within their existing budgets. A modest and measured increase in flexibility will help employers begin to address demonstrated cases of compression, inversion or retention for excluded management employees, and to be more consistent with increases provided in collective bargaining agreements under the Economic Stability Mandate. This consistent approach will help contribute to a sustainable, public sector-wide compensation system.

Government has taken numerous actions to further align executive compensation across the broad public sector with the priorities and fiscally prudent principles of government, including:

• In June 2015, employers adopted a common public sector philosophy to bring a foundation of consistency to compensation decision-making, reduce variation between sectors where appropriate, and ultimately reduce the competition between public sector employers that can drive up costs for taxpayers.
• In February 2015, annual sessions started to be held for public sector employers and staff to continuously inform on clarification the guidelines and efficiencies in the executive compensation disclosure process, and to keep up-to-date on the Taxpayer Accountability Principles.  The latest session was held in April 2016.
• In July 2014, government provided direction to public sector entities on standards of conduct, including post-employment restrictions and implemented the new Taxpayer Accountability Principles that strengthen accountability, promote cost-control, and ensure public-sector entities operate in the best interest of taxpayers.

In conjunction with the release of Public Accounts 2015-16, this is government’s ninth annual executive compensation disclosure, which includes the total compensation of the CEO and top four decision-makers with a base salary of $125,000 or above for each public-sector employer in the preceding fiscal year. Each annual disclosure includes base pay, pension, benefits, performance-based pay or holdbacks and any pre- or post-employment contracts, as well as elements that may vary year to year and affect the overall total, such as unused vacation, retirement allowances or severance. B.C. continues to be a leader in executive compensation disclosure in Canada.

Learn more:

For more information on executive compensation, go to: http://www.fin.gov.bc.ca/psec/disclosure/index.htm