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HomeMy WebLinkAboutReport 18-010 Executive Compensation Public ConsultationSPECIAL BOARD 16 January 2018 Report No. 18-010 Executive Compensation Public Consultation Key Contact: Janice McCoy, Superintendent of Human Resources, 613-596-8211 ext. 8207 PURPOSE: 1.To receive a report on executive compensation public consultation and to seek Board approval to submit to the Ministry of Education the Board’s Executive Compensation Program that was approved on 16 November 2017, and the publicconsultation feedback summary. CONTEXT: 2.The Board revised and approved its Executive Compensation Program at a Special Board meeting on 16 November 2017 (attached as Appendix A). Therevised document was submitted to the Ministry on 17 November and approvedon 11 December 2017. As required by the government regulations, the OCDSB was required to conduct a 30-day online public consultation on the proposed Executive CompensationProgram. The Executive Compensation Program was posted on the District’swebsite on 14 December 2017 (Appendix B) and members of the public were invited to submit online feedback until 13 January 2017. KEY CONSIDERATIONS: 3.The Board is required to consider the input received during the publicconsultation and determine whether changes to the Executive Compensation Program are required before sending its final submission to the Ministry of Education for approval. A summary of the community feedback is attached as Appendix C. Report 18-010 Executive Compensation Public Consultation Page 1 RESOURCE IMPLICATIONS: 4. The Ministry of Education has indicated that they will fund the approved salary increases. COMMUNICATION/CONSULTATION ISSUES: 5. The final Executive Compensation Program will be posted to the District’s website and communicated to stakeholders following Board approval. STRATEGIC LINKS: 6. The District’s stewardship objective of responsible and sustainable management of human resources. The current compensation of the executive team at the OCDSB is currently out of alignment with the executive compensation framework and with other Ontario school districts and creates an unacceptable business risk in terms of recruitment and retention of members of the senior leadership team RECOMMENDATION: The recommendation was submitted to the meeting of the Committee of the Whole, In Camera, on 16 January 2018. Janice McCoy Superintendent of Human Resources Jennifer Adams Director of Education and Secretary of the Board APPENDICES Appendix A Proposed Executive Compensation Program for the Ottawa-Carleton District School Board, November 2017 Appendix B Executive Compensation - Information posted to the OCDSB website Appendix C Executive Compensation - Public Consultation Feedback Summary Report 18-010 Executive Compensation Public Consultation Page 2 Appendix A to Report 18-010 Appendix B to Report 18-010 Executive Compensation – Information Posted to the OCDSB Website 14 December 2017 In 2014, the Government of Ontario began the process of developing public sector compensation frameworks to ensure a transparent and consistent approach to executive compensation. This applies to all Ontario public sector designated employers, such as universities, colleges, hospitals and school boards, including the Ottawa-Carleton District School Board. All 72 Ontario Public School Boards worked together to develop an Executive Compensation Framework which would ensure compliance with this legislation for the K-12 education sector. The sector framework was approved by the Ministry of Education and Treasury Board Secretariat. Using the approved framework and in consultation with the Government of Ontario, the OCDSB has developed a proposed Executive Compensation Program In the education sector, a competitive, fair, and responsible Executive Compensation Program is vital for attracting and retaining the talented, innovative leadership required to ensure continued progress and success in advancing student achievement for all. The OCDSB Board of Trustees recognizes the importance of developing a fiscally responsible compensation program that is fair, consistent, reflective of the unique complexities of the school board market as well as the external market, and provides recognition for the professional competencies, complexity of work and workload demands of our senior management team. In reviewing executive compensation, the Board was guided by the following principles: 1.Fair and market based compensation is essential to the recruitment and retention of a leadership team in a high functioning organization; 2.The provincial framework is an important step towards equity in executive compensation for Ontario School districts; 3.Implementation of the executive compensation framework must be undertaken in a reasonable timeframe that is within the life of the Crown approved framework, with recognition of the unique circumstances of local boards to achieve the intended outcome and ensure equity; 4.The current compensation of the executive team at the OCDSB is out of alignment with the framework and with other Ontario school districts and creates an unacceptable business risk in terms of recruitment and retention of members of the senior leadership team. As part of its due diligence, the Board engaged a 3rd party to conduct an independent review of OCDSB executive salaries relative to local Ottawa comparators and to validate the appropriateness of the proposed provincial framework salaries. The sample comparators included mid-size and large post- secondary education institutions, the federal public service, the municipal sector, major social services agencies and direct comparator school districts. This information was instrumental in helping the Board to develop a proposed compensation framework which is fair, competitive, responsible, and transparent. Appendix C to Report 18-010 Executive Compensation – Public Consultation Feedback Summary As required by the Province of Ontario’s Broader Public Sector Executive Compensation Act, 2014 and regulations, the OCDSB conducted a 30-day online public consultation on the Board’s proposed Executive Compensation Program. The Program was posted on the District’s website on 14 December 2017 and members of the public were invited to submit online feedback until 13 January 2017. The Board is required to consider the input received and determine whether changes to the Executive Compensation Program are required before sending its final submission to the Ministry of Education for approval. During the 30-day online public consultation period the Board received the following input from the public: Date Received Comment 19 December 2017 “Curious why consultation is occurring over the holidays, it blacks out nearly half the time for supposed consultation.” 12 January 2018 “Salary and compensation plans are complex processes. Without the relevant information, how can the public provide meaningful input??? The program feres to comparator organizations but no data is provided about those comparators and their compensation schemes, nor is a rationale provided as to why the proposed ranges are capped at 50th percentile?? if proper comparators selected, particularly among school boards, doesn’t this perpetuate inequity”