1. Background

The Broader Public Sector Executive Compensation Act, 2014 (the Act)was proclaimed into force on March 16, 2015. Under the authority of the Act, the Executive Compensation Framework Regulation (the Framework Regulation) came into force on September 6, 2016.

The Act allows the President of the Treasury Board to issue directives requiring designated employers to submit reports concerning compliance with executive compensation frameworks established under the Act.

2. Purpose

The purpose of this directive is to outline the requirements for reporting with which every designated employer must comply under the Act.

3. Application and scope

This directive applies to all designated employers. Under the Act, “designated employer” means:

  1. Every hospital within the meaning of the Public Hospitals Act and the University of Ottawa Heart Institute/Institut de cardiologie de l’Université d’Ottawa.
  2. Every board within the meaning of the Education Act.
  3. Every university in Ontario and every college of applied arts and technology and post-secondary institution in Ontario whether or not affiliated with a university, the enrolments of which are counted for purposes of calculating annual operating grants and entitlements.
  4. Independent Electricity System Operator.
  5. Ontario Power Generation Inc. and each of its subsidiaries.
  6. Every body prescribed as a public body under the Public Service of Ontario Act, 2006 that is not also prescribed as a Commission public body under that Act.
  7. The Corporation known as Ornge, incorporated under the Canada Corporations Act on October 8, 2004 as Ontario Air Ambulance Services Co.
  8. Every other authority, board, commission, committees, corporations, councils, foundations or organizations as may be prescribed by regulation.

4. Compliance reports

Each designated employer is required to complete two types of compliance reports:

  • Section 4.1 sets out the requirements for compliance reports in respect of executive compensation programs.
  • Section 4.2 sets out requirements for annual compliance reports in respect of compensation provided to designated executives.

All compliance reports must be submitted to a designated employer’s overseeing ministry liaison. The overseeing ministry will provide the report to the Treasury Board Secretariat to be provided to the President of the Treasury Board.

4.1 Executive Compensation Program Compliance Report

A) Frequency

Each designated employer is required to submit an executive compensation program compliance report (program compliance report):

  • When the employer first posts an executive compensation program in accordance with s.4(3) of the Framework Regulation; and
  • Each time the employer posts an updated version of its executive compensation program in accordance with s.4(4) of the Framework Regulation.

B) Information to be included

Each program compliance report must be submitted on or before the date on which the corresponding executive compensation program is posted.

Each program compliance report must include a statement signed by the designated employer’s board chair, or equivalent highest ranking officer, attesting that the employer’s executive compensation program conforms to the Framework Regulation.

Each program compliance report must include the website address where the designated employer’s executive compensation program is or will be posted.

C) Form of the report

Each program compliance report must be completed on the form entitled “Executive Compensation Program Compliance Report” that is available on the Forms Repository.

4.2  Annual Executive Compensation Compliance Report

A) Frequency

Each designated employer is required to submit an annual executive compensation compliance report (annual compliance report) on or before May 1 of each year.

The first annual compliance report is due on May 1, 2018 and covers the period that begins on the date the designated employer first posts its finalized executive compensation program and ends on March 31, 2018. If the designated employer first posts its finalized executive compensation program after March 31, 2018, the first annual compliance report is due on May 1 of the fiscal year (April 1 - March 31) after the fiscal year in which the finalized program is posted.

Each subsequent annual compliance report covers the period from April 1 to March 31 of the preceding year.

B) Information to be included

Each annual compliance report must include a statement signed by the designated employer’s board chair, or equivalent highest ranking officer, attesting that the employer has compensated its designated executives in accordance with the terms of the Framework Regulation during the relevant reporting period.

C) Form of the report

Each annual compliance report must be completed on the form entitled “Annual Executive Compensation Compliance Report” that is available on the Forms Repository.