Today the government introduced Bill 19, Reform of Agencies, Boards and Commissions Compensation Act, to address consistency and fairness in executive compensation levels.
The proposed legislation would enable government to develop regulations setting compensation frameworks, including salary ranges, for executives and board members of the public agencies, boards and commissions subject to the Alberta Public Agencies Governance Act.
“Albertans expect compensation arrangements that are funded by public dollars to be consistent with the broader public sector and comparable jurisdictions. This legislation directly addresses the wide range of compensation practices that currently exist in our provincial agencies to ensure greater accountability, consistency and fairness.”
Last week’s announcement builds on government’s focus on controlling costs while protecting frontline programs and services for Albertans. As part of Budget 2016, a total of 26 agencies, boards and commissions were consolidated or dissolved, saving $33 million over three years.
An independent, compensation consulting firm would advise government on developing standardized compensation frameworks based on a review of comparable jurisdictions.
Parties affected by the legislation would be engaged before the introduction of regulations to help determine how to implement compensation frameworks. Albertans are invited to review and comment on government’s proposed compensation policy.
- The Reform of Agencies, Boards and Commissions Compensation Act would apply initially to agencies whose executives have base salaries over $200,000 per year, excluding post-secondary institutions at this time.
- Jurisdictions such as Ontario, British Columbia and Nova Scotia have introduced similar legislation to enable standardized compensation practices across their public sectors.