Draft Executive Compensation Program for Consultation

Posted December 16, 2016 to January 14, 2017

To the greater Cambrian College community, including all internal and external stakeholders:

In order to establish consistency and transparency across the public sector, the Government of Ontario has introduced a new framework for determining executive compensation at colleges, universities, hospitals, agencies, and other parts of the broader public sector. As part of this process, we, and other colleges across Ontario are reaching out to the College community and the public to solicit comments and views on the draft Executive Compensation Program that has been developed.

In presenting this Program to the community, the Board of Governors at Cambrian College is cognizant of the need to attract and retain the very best leaders possible – leaders who can deliver high-quality public services on behalf of the College and, at the same time, manage responsibly.

At each of the 24 colleges across Ontario, the Senior Leadership Team is responsible for managing the complex and diverse affairs of their respective colleges and for providing the leadership required to achieve their college’s strategic objectives, with a focus on developing a new generation of leaders and innovators who will contribute to an inclusive, prosperous and globally-competitive Ontario.

Our College has a vibrant community of nearly 7,000 learners, with over 4,200 full-time students in 80 full-time programs across three campus locations in northern Ontario: Sudbury, Espanola, and Little Current. Our Senior Leadership Team is accountable for a budget of $80 million that is used to provide students with the necessary education for the jobs of today and tomorrow. Therefore, it is important that our Executive Compensation Program is appropriate, accountable and effective.

The draft Program sets out five important components of the Executive Compensation Program that are discussed in detail below:

  1. Positions Affected by the Executive Compensation Program
  2. Compensation Philosophy
  3. Comparators
  4. Maximum Salary and At-Risk Pay
  5. Elements of Executive Compensation Not Provided to Non-Executives

Each of these components is vital to the creation of an appropriate Executive Compensation Program at our College.

Once you have had a chance to review the information and its links to additional material, please provide your comments below. We will welcome comments up until January 14, 2017. Your thoughtful and constructive input will help us develop the best and most appropriate Executive Compensation Program for our College.

Please know that all comments will remain anonymous, but that all comments will be kept on file for two years at the request of the Government of Ontario.

Thank you again for your interest and contribution.

David McNeil
Chair of the Board of Governors
Cambrian College

Frequently Asked Questions (FAQ)

1. Why are you consulting on executive compensation?

The Government of Ontario has introduced a new framework for determining executive compensation in colleges, universities, hospitals, agencies, and other parts of the broader public sector.

As part of that process, we, and other colleges across Ontario, are reaching out to the college community and the public to receive comments and views.

2. What are you hoping to get out of the consultation?

Everyone’s thoughtful and constructive input will help us develop the best and most appropriate program for our college.

It is important that an executive compensation program is appropriate, accountable and effective.

3. On what topics are you specifically seeking input?

The draft program sets out five important components of the Executive Compensation Program that are discussed at length in the following document:

  1. Positions Affected by the Executive Compensation Program;
  2. Compensation Philosophy;
  3. Comparators;
  4. Maximum Salary and At-Risk Pay;
  5. Elements of Executive Compensation Not Provided to Non-Executives

Each of these areas is important to build the most appropriate Executive Compensation Program at our college.

4. Where can I find the consultation documents?

The draft executive compensation program is posted on the college website on this page, which can be linked from the following address: http://cambriancollege.ca/ecpfeedback

5. How do I provide comments?

Provide your comments here. We ask everyone to take the time to review the documents and provide comments. We will welcome comments up until January 14, 2017.

6. What are you going to do with the comments?

Once we receive all comments, we’ll review these comments and look for areas where we can modify and improve the executive compensation program. Everyone’s thoughtful and constructive input will help us develop the best and most appropriate program for our college.

Draft Executive Compensation Program for Consultation

Posted December 16, 2016 to January 14, 2017

1. Positions Affected by Executive Compensation Program

This Executive Compensation Program outlines the manner in which compensation is determined for members of the Senior Leadership Team, which consists of the following positions:

  • President/Chief Executive Officer
  • Vice President, Academic
  • Vice President, Finance and Administration
  • Vice President, Innovation, International and Pathways
  • Associate Vice President, Student and Employee Development
  • Associate Vice President, College Advancement and Recruitment

2. Compensation Philosophy

Cambrian College’s Executive Compensation Program is designed to attract, motivate, and retain highly-qualified and accountable members of the Senior Leadership Team and align their efforts to support the achievement of the college’s operating goals and strategic objectives. Please click on the following links for information on Cambrian College’s Strategic Plan and Business Plan.

Third party experts in compensation practices were engaged to provide expertise and knowledge in order to develop this draft Executive Compensation Program. Cambrian College’s draft Executive Compensation Program and the specific compensation levels for the members of the Senior Leadership Team have been approved by the Board of Governors.

As part of the process to determine the compensation program for the Senior Leadership Team, a number of objective measures of complexity and accountability that pertain to these roles were assessed:

This assessment consisted of a review of the following core measures:

  • Enrolment,
  • Revenue, and
  • Staff complement.

In order to finalize the relative ranking, a further assessment of additional complexity and accountability factors was conducted:

  • Number and diversity of degree programs offered,
  • Applied research activity,
  • Nature and complexity of particular types of enrolment, including first generation, aboriginal, and/or special needs students, as well as the provision of clinical and cooperative/experiential programs, and
  • Size, diversity, and complexity of the geography in which the College is located.

Based on this analysis, the Board has approved that Cambrian College is in level two of the five levels in terms of the relative complexity and accountability outcomes when compared to other colleges in Ontario.

3. Comparators

Senior Leadership Team compensation is determined through an analysis of appropriate comparable positions at comparator organizations. All comparators are within the public sector in Ontario.

The organizations have been selected because they require similar essential competencies (knowledge, skills, and abilities) of leadership, relative to the types of complexities and the levels of accountabilities as required by our Senior Leadership Team in order to achieve Cambrian College’s strategic and operational objectives.

The comparator analysis includes different types of public sector organizations across Ontario, given that there are demonstrated examples of mobility within the college sector to different geographic locations in Ontario as well as movement from and to the college sector from these other types of public sector organizations.

All colleges in Ontario share the same core strategic mandate and purpose, and as such, Cambrian College’s Executive Compensation Program has been developed based on an analysis of comparators that are applicable to the entire college sector, given that all colleges compete for executive staff with these organizations.

The comparator positions and organizations are set out below, along with a description of how they are comparable to Cambrian College:

Colleges

As outlined in the Ontario Colleges of Applied Arts and Technology Act, all colleges in Ontario share the same core strategic mandate and operations in delivering post-secondary education. In each of the 24 colleges across Ontario, the Senior Leadership Team is responsible for managing the complex and diverse affairs of the college and providing the leadership required to achieve the college’s strategic objectives.  There is demonstrated mobility of senior leadership among colleges of different size and geographic location within the province.

Specific comparator colleges used are:

  • Conestoga
  • Humber
  • Seneca
  • Sheridan

Universities

Like colleges, universities in Ontario share the same function in delivering post-secondary education, including the provision of degrees, diplomas and other credentials. University senior leadership fulfills a similar role to that performed by college senior leadership teams. The senior leadership is responsible for managing the complex and diverse affairs of the university and providing the leadership required to achieve the university’s strategic objectives. There is a high level of interaction between the activities of colleges and universities in Ontario, including partnership and pathways agreements. There is demonstrated mobility of senior leadership among colleges and universities in Ontario.

Specific comparator universities used are:

  • University of Guelph
  • University of Ottawa
  • University of Waterloo
  • York University

Hospitals

Like colleges, hospitals in Ontario are complex organizations delivering public services in Ontario communities. The hospital’s senior leadership is responsible for managing the complex affairs of the hospital and providing leadership to achieve the hospital’s strategic plan. In addition to clinical services, hospitals perform functions in education. There is demonstrated mobility of executives between colleges and hospitals in Ontario.

Specific comparator hospitals used are:

  • Hamilton Health Sciences Centre
  • London Health Sciences Centre
  • Trillium Health Partners
  • University Health Network

4. Maximum Salary and Performance Pay At-Risk

Cambrian College’s Executive Compensation Plan establishes the maximum salary level and percent of pay at risk on the above noted comparator analysis.

Regulation 304/16 under the Broader Public Sector Executive Compensation Act, requires that this calculation be determined by using no greater than the 50th percentile of a minimum of eight comparator organizations for each class of executives.

For the college president, the 50th percentile value of the maximum salary and performance-related pay that may be paid to these comparators is $445,000. Given the relative size and assessment of the measurable data on complexity and accountability factors for Cambrian College, the comparative analysis further discounted the 50th percentile value by 27 percent, which results in a value of $325,000.

For other senior leadership team members, the 50th percentile value of the maximum salary and performance-related pay that may be paid to these comparators is $303,000. Given the relative size and assessment of the measurable data on complexity and accountability factors for Cambrian College, the comparative analysis further discounted the 50th percentile value by 27 percent, which results in a value of $221,000.

PositionMaximum Salary and Performance Pay At-Risk
President$325,000
20% is at risk based on annual performance
Other Senior Leadership Team Member$221,000
15% is at risk based on annual performance

The Board of Governors conducts the annual performance review process for the President, and the President conducts this process for the other members of the Senior Leadership Team, subject to the Board’s oversight.

Figures released through the Ministry of Finance’s annual salary disclosure may differ from the values identified in this Executive Compensation Program for a number of reasons, including that the Ministry of Finance reporting period is based on a January 1 – December 31 calendar, year whereas Cambrian College’s compensation program is based on an April 1 – March 31 fiscal year, and the amount of at risk compensation is based on performance and may not be consistent from year to year.

5. Elements of Executive Compensation Not Provided to Non-Executives

Members of the Senior Leadership Team receive group health insurance benefits and pension coverage under a defined benefit pension plan on the same basis as non-executive managers at the College. Most compensation elements for the Senior Leadership Team are provided in the same manner and relative amount as that which is provided to non-executive managers at the College. In some cases, compensation elements are required for the performance of the executive’s job or are required for critical business reasons.

Provide Your Comments / Feedback

  • While your comments will remain anonymous, they will be kept on record for two years at the request of the Government of Ontario