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ARTICLE · 25 SEPTEMBER 2018

Executive Salaries Frozen Effective August 13, 2018

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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On August 13, 2018, the Ontario government filed Regulation 406/18, and revoked Regulation 304/16, under the Broader Public Sector Executive Compensation Act, 2014 (the BPSECA).

CanadaCorporate/Commercial Law

On August 13, 2018, the Ontario government filed Regulation 406/18, and revoked Regulation 304/16, under the Broader Public Sector Executive Compensation Act, 2014 (the BPSECA). This latest change reverses two years of hard work to implement new compensation programs, and institutes a strict compensation freeze similar to prior legislation.

Background

Since 2010, Ontario's broader public sector was subject to a freeze on executive compensation, which applied to directors of education, supervisory officers, and other executives at school boards. The restraint provisions in the Public Sector Compensation Restraint to Protect Public Services Act, 2010 and then in the Broader Public Sector Accountability Act, 2010 operated to effectively prohibit increases to compensation for school board executives except in limited circumstances. The general approach was to refrain from providing executives with salary increases, and to provide salaries to new hires that were equal

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