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ARTICLE · 03 JULY 2019

Proposed Changes To School Board Executive Compensation

Borden Ladner Gervais LLP
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For the past decade, executive compensation at school boards has been constrained and complicated by legislation and regulations. Passed on May 29, 2019, Bill 100

CanadaCorporate/Commercial Law

For the past decade, executive compensation at school boards has been constrained and complicated by legislation and regulations. Passed on May 29, 2019, Bill 100, part of the Ontario government's budget, signals more changes to the Broader Public Sector Executive Compensation Act, 2014 (BPSECA). While the substantive changes will likely come in the form of regulations, the proposed changes to the BPSECA in Bill 100 provide a preview – including more government involvement, pay adjustments based primarily on performance, and limits on compensation increases.

Background

Compensation for directors of education, supervisory officers and other executives at school boards and other broader public sector organizations has been restricted in various ways under a series of laws and regulations since 2010. 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 

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