Remuneration

Policies and best practices for compensating public agency directors for their services and expenses.

Government policy

Information on public agency remuneration practices must be easily accessible and available. All public agencies disclose the remuneration directors receive. To learn more about remuneration practices for public agencies, browse the list of public agencies.

The Reform of Agency, Board and Commission Compensation Act was proclaimed on May 27, 2016 and enables government to develop regulations to set compensation frameworks for executives and board members of public agencies subject to the Alberta Public Agencies Governance Act (0.3 MB)

The Reform of Agencies, Boards and Commissions Compensation Regulation 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. The compensation regulation comes into effect March 16, 2017. It applies immediately to new hires and reappointments, and to incumbents after a two-year notice period. 

Discussion

While there is no requirement that appointees be paid (as this is at the discretion of the minister or Cabinet), the Government of Alberta recognizes that individuals appointed to the governing bodies of Alberta's public agencies should be reimbursed for the cost of expenses. In most cases, Orders in Council created under the authority of the Public Service Act outline the remuneration schedules. A wide range of factors affect remuneration, including complexity, financial impact, roles, time commitment, public service, recruitment, risk and fiscal responsibility.

Remuneration of appointees must reflect the nature of service, complexity of tasks and amount of time dedicated to service. Except in very unusual circumstances, there should be consistency within a public agency and among similar public agencies for director remuneration.

The Public Sector Compensation Transparency Act (0.3 MB) requires public agencies who are subject to the Alberta Public Agencies Governance Act (0.3 MB) to disclose of the names and compensation for all board members and employees who earn over $125,000/year.

Requiring compensation to be publicly disclosed promotes transparency and consistency by raising awareness of remuneration practices.

The method of disclosing director remuneration is at the public agency's discretion. Best practices indicate that listing remuneration in annual reports and posting it on the public agency or government websites are both effective.

The Public Agency Secretariat will work with departments to increase awareness and understanding of the current remuneration policy.