The contract disclosure will be aligned with the work already underway to standardize compensation practices in public sector bodies. In the future, contract disclosure will apply to the same individuals as the new executive compensation framework, which is being developed.
“Requiring employment and severance contracts to be disclosed for public sector executives will further help Alberta taxpayers see where their dollars are spent.”
As part of the regulation for public disclosure, ATB Financial, Alberta Investment Management Corporation (AIMCo) and the Alberta Teachers Retirement Fund are exempt from the Public Sector Compensation Transparency Act.
This decision is consistent with best practices in other public sector financial agencies across Canada, including the Ontario Teachers’ Pension Plan. It will provide a level playing field between agencies and their private sector counterparts, while ensuring Albertans continue to be served by the top talent in the highly competitive financial industry.
The Public Sector Compensation Transparency Act also provides for individual exemptions where disclosure could unduly threaten the safety of an individual. Applications for individual exemptions due to safety concerns will be considered on a case-by-case basis by the Deputy Minister of Justice and Solicitor General.
- The Public Sector Compensation Transparency Act, which was passed in the fall of 2015 requires public sector bodies to disclose all remuneration, including severance and pension contributions, for those whose earnings are over the $125,000 compensation threshold.
- Public sector bodies are required to publish compensation (e.g. salary) information online by June 30, 2016. Employment and severance contracts for the positions that will be covered by the executive compensation framework are not currently required to be posted by June 30, 2016, but they will be required to be posted by a date yet to be determined.
- Public sector bodies may publicly disclose the compensation information any time before June 30, 2016. For the contract disclosure, harmonizing the timelines with the rollout of the new executive compensation framework under development will help ensure agencies, boards and commissions have the needed time to comply with this requirement.