A compensation regulation under the Reform of Agencies, Boards and Commissions Act establishes total compensation, including salaries and benefits, for chief executive officers (CEOs) or equivalents in 23 provincial agencies that are part of the Alberta Public Agencies Governance Act.
Compensation regulation framework
The compensation regulation comes into effect March 16, 2017. It applies immediately to new hires and reappointments, and to incumbants after a two-year notice period.
These changes set salary bands for CEOs, bringing their pay in line with public sector equivalents. The changes also mandate the following:
- eliminating executive bonuses
- eliminating executive market modifiers, which is added pay over and above regular salary
- capping executive severance pay at 12 months
- aligning other executive compensation components, such as benefits like private health care access
- eliminating perks such as retention bonuses, golf club memberships and housing allowances
Table 1 compares the CEOs’ (and equivalents’) 2015 compensation disclosure amount under the Public Sector Compensation Transparency Act with existing base salary and variable pay as submitted by public agencies in 2016. The new base salary ranges and actual base salary amounts under the new compensation regulation are also shown.
|Agency name||2015 Compensation disclosure amount1||Existing base salary4||Existing variable pay||New CEO base salary range||New CEO base salary5|
|Agriculture Financial Services Corporation||$732,1032||$518,4712||N/A||$223,040 – $301,760||TBC|
|Alberta Energy Regulator||$721,680||$525,000||N/A||$264,480 – $396,720||$396,720|
|Alberta Enterprise Corporation Board||$203,982||$275,000||N/A||$184,365 – $249,435||$249,435|
|Alberta Gaming and Liquor Commission||$367,125||$286,977||N/A||$223,040 – $301,760||$286,977|
|Alberta Human Rights Commission||$341,917||$258,375||N/A||$184,365 – $249,435||$249,435|
|Alberta Innovates||$284,4243||$360,000||N/A||$264,480 – $396,720||$360,000|
|Alberta Local Authorities Pension Plan||$329,222||$248,200||$52,800||$184,365 – $249,435||$248,200|
|Alberta Pensions Services Corporation||$411,617||$264,576||$73,023||$223,040 – $301,760||$264,576|
|Alberta Petroleum Marketing Commission||$658,014||$600,000||N/A||$223,040 – $301,760||$301,760|
|Alberta Securities Commission||$487,3563||$491,032||N/A||$333,280 – $499,920||$491,032|
|Alberta Utilities Commission||$529,400||$345,849||N/A||$264,480 – $396,720||$345,849|
|Appeals Commission for Workers’ Compensation||$285,945||$217,589||N/A||$184,365 – $249,435||$217,589|
|Balancing Pool||$416,739||$364,000||N/A||$153,595 – $207,805||$207,805|
|Credit Union Deposit Guarantee Corporation||$365,169||$309,000||N/A||$223,040 – $301,760||$301,760|
|Energy Efficiency Alberta (new agency)||N/A||N/A||N/A||$153,595 – $207,805||TBC|
|Health Quality Council of Alberta||$405,540||$350,000||N/A||$184,365 – $249,435||$249,435|
|Labour Relations Board||$314,8362||$217,5896||N/A||$184,365 – $249,435||$217,589|
|Land Compensation Board/ Surface Rights Board||$275,731||$214,032||N/A||$184,365 – $249,435||$214,032|
|Market Surveillance Administrator||$252,572||$286,977||N/A||$153,595 – $207,805||$207,805|
|Natural Resources Conservation Board||$237,711||$217,589||N/A||$184,365 – $249,435||$217,589|
|Travel Alberta||$240,946||$230,000||N/A||$184,365 – $249,435||$230,000|
|Workers’ Compensation Board||$896,206||$475,000||$218,313||$264,480 – $396,720||$396,720|
1 Includes base salary, bonuses, non-taxable benefits as well as non-monetary benefits such as pension contributions (employer's portion), employment insurance, CPP and WCB premiums.
2 Previous CEO’s salary disclosure amount
3 Interim CEO information reported in salary disclosure
4 Base salaries submitted as per Section (4) of the Reform of Agencies, Boards and Commissions Compensation Act (RABCCA).
5 New CEO Base Salary will immediately take effect for new hires or reappointments; or on March 16, 2019 for existing incumbents.
6 Existing Base Salary amount based on current incumbent’s existing base salary.
Executive compensation plans
The following agencies, boards and commissions are required to submit executive compensation plans annually:
- Alberta Management Investment Corporation (AIMCo), Alberta Treasury Branch (ATB) and the Alberta Teachers’ Retirement Fund (ATRF). These large financial agencies have direct private sector counterparts, such as banks and investment firms. Their compensation must be designed for the specialized financial market in which they operate, while demonstrating alignment with government’s compensation principles.
- Alberta Health Services (AHS) is Canada’s only fully integrated provincial health system and there is no similar organization to provide a relevant comparison of compensation. AHS will submit a compensation plan to ensure scrutiny of its compensation practices. Transparency will continue to be provided through mandated salary disclosure.
- The Alberta Electric System Operator (AESO) plays a critical role as Alberta’s electricity system transitions to a capacity market. This shift requires executive continuity. In the interim, total compensation will be frozen at AESO and the agency will be required to submit a compensation plan that demonstrates how it is aligned to achieve the goals of the market transition.
News: Government reins in agency CEO pay and benefits (Feb 24, 2017)
Designated Agencies (0.4 MB)
Ministerial Guidelines (0.1 MB)
Regulation Handbook (0.5 MB)