New Ontario Executive Compensation Freeze

October 4, 2018 | Greg Bush, Madeleine Dusseault

The Ontario government recently issued Regulation 406/18 under the Broader Public Sector Executive Compensation Act 2014 (the BPSECA), freezing compensation for executives and heads of certain public bodies who earn $100,000 or more.

The regulation implements a cap on salaries and other compensation for designated executives, as well limiting the total amount of performance-related pay these designated employers can dispense.

The designated employers include a range of Ontario public sector employers, including school boards, universities and colleges. Most of these employers were required to freeze salaries and compensation for designated executives as of August 13, 2018, forestalling the compensation plans previously approved under former Regulation 304/16, which for most school boards would have seen modest increases in salaries for senior administrators.  In accordance with the new regulation, these previously approved compensation plans are void where they are inconsistent with the freezes imposed under the new scheme.

The Ontario government will review Regulation 406/18 by June 2019, and will focus its review on the regulation’s effectiveness in furthering the purpose of the BPSECA.

Disclaimer

This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice.

Miller Thomson LLP uses your contact information to send you information electronically on legal topics, seminars, and firm events that may be of interest to you. If you have any questions about our information practices or obligations under Canada's anti-spam laws, please contact us at privacy@millerthomson.com.

© 2020 Miller Thomson LLP. This publication may be reproduced and distributed in its entirety provided no alterations are made to the form or content. Any other form of reproduction or distribution requires the prior written consent of Miller Thomson LLP which may be requested by contacting newsletters@millerthomson.com.