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