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ARTICLE · 09 SEPTEMBER 2016

New Framework Regulation: Ontario Capping Salary & Performance Pay For Broader Public Sector Organizations

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The Ontario Government introduced Regulation 304/16: Executive Compensation Framework under the Broader Public Sector Executive Compensation Act, 2014 for broader public sector executive compensation.

CanadaEmployment and HR
Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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On September 6, 2016, the Ontario Government introduced Regulation 304/16: Executive Compensation Framework (the "Framework") under the Broader Public Sector Executive Compensation Act, 2014 ("BPSECA") for broader public sector executive compensation. The Framework sets out requirements that all designated employers must follow for establishing and posting executive compensation programs. It also caps salary and performance-related payments for designated executives. As discussed below, the Framework becomes effective with respect to a designated employer when the designated employer posts a compliant executive compensation program on its website which must be no later than September 5, 2017.

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