The British Columbia government has introduced new restraints on executive compensation in the public sector, including the province’s securities regulator.
The province’s government announced a new policy on executive compensation in Crown corporations, that aims to allow it to attract and retain good employees, but at an affordable cost. The policy includes: immediately freezing the compensation of all current executives; recruiting new senior executives at a salary 10% lower than the incumbent; limiting executives to 85% of CEO salaries; incentive pay will be phased out for new non-executive staff; and bonuses will be phased out for new staff too.
“Together, these measures will reduce overall compensation, deliver savings, and set an increased tone of restraint,” it says. The government notes that many Crown corporations already meet some or most of these policies. If they don’t, their boards have to come up with plans by Jan. 1, 2013, showing how they will align with the new policy.
According to government disclosure, the current chair of the B.C. Securities Commission (BCSC), Brenda Leong, ranks among the top 10 paid public sector employees in the province, earning $499,251 in the latest year. Executive director, corporate finance, Martin Eady, ranked second during the year, with total compensation of almost $650,000, but this included almost $400,000 in severance.