British Columbia’s 10th annual disclosure of detailed information on total compensation for senior public sector executives demonstrates continued stability, delivering value for taxpayers.
The total amount of compensation paid by the provincial public sector in 2016-17 increased by 3.8% compared to last year, and average total compensation per executive increased 2.1%, partly due to most organizations having an additional pay period in 2016-17 compared to the usual 26.
Overall, less turnover this year resulted in a higher number of executives reporting a full year of compensation. Additionally, one organization was added to the disclosure for the first time, increasing the number of executives disclosed.
Overall, the 2016-17 executive compensation disclosure shows a stable and sustainable trend that demonstrates the importance of consistent oversight, clear guidelines and a commitment to transparency. It also reflects the impact of adopting a common public sector compensation philosophy to guide and bring consistency to the compensation decision-making process across the broader public sector.
Beginning in 2015, employers were able to provide modest salary adjustments to address demonstrated cases of compression, inversion or retention of senior employees meeting performance objectives.
Since the implementation of the Crown Corporation Executive Compensation Policy in 2012-13, the number of executives reporting holdbacks or bonuses has declined to 73 this year from 97 in 2011-12, and the total amount of holdbacks or bonuses paid fell by 41% when comparing to 2012-13. In 2016-17, 24% of executives reported receiving a holdback or bonus, down by 35% in 2011-12, and the average amount of a holdback or bonus fell 32% since 2012-13.
British Columbia provides the most comprehensive public sector compensation disclosure among provinces, driven by the desire to promote cost-consciousness and accountability among public sector organizations. Executive compensation disclosure 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 payments for unused vacation, retirement allowances or severance.
For more information on executive compensation, go to: http://www2.gov.bc.ca/gov/content/governments/organizational-structure/ministries-organizations/central-government-agencies/public-sector-employers-council-secretariat
Jamie EdwardsonCommunications Director
Ministry of Finance