Executive Management Policy

General Policy Questions
Directive on Executive Compensation
Directive on the Performance Management Program (PMP) for Executives
Directive on Career Transition for Executives

General Policy Questions

1. What is the difference between the Policy on the Management of Executives and the directives?
The Policy on the Management of Executives describes deputy heads’ responsibilities and accountabilities for the management of executives. The directives provide departments with formal instructions on what is required and how it should be done. The requirements of both the policy and directives are mandatory.

2. To whom does the Policy on the Management of Executives apply?
This is a policy for the core public administration. As referenced in the Application Table in Appendix A of the policy, it applies to employees of the Executive (EX) Group, levels 1 to 5. Certain elements of the policy also apply to excluded employees of the Defence Scientific Service (DS) Group, levels 7A, 7B and 8; Medical Officer (MD-MOF) Group, levels 4 and 5; and Medical Specialist (MD-MSP) Group, level 3.

3. Why does the policy put several restrictions on sub-delegation when the Public Service Modernization Act encourages delegation to the lowest possible level?
The majority of the policy components can be sub-delegated. However, to ensure appropriate accountability, some elements remain solely the deputy head’s authority. These are elements that are exceptional in nature, such as an increase in salary above the normal 5%, special deployments in non-classified duties and the authorization of the classification of executive positions. Anything that is within normal standards can be sub-delegated.

Directive on Executive Compensation

Salary Elements - Acting Situations

4. When are executives eligible to receive acting pay?

Executives are eligible to receive acting pay once three conditions are met:
- The executive’s substantive level must be EX-01, EX-02, EX-03, DS-7A, or DS-7B.
- The executive substantially performs the duties of a position that has a higher maximum salary.
- The executive has acted in the higher position for at least three consecutive months.

Acting pay is then retroactive to the date the executive began the acting appointment. Executives at the EX-04 or EX-05 level are not eligible for acting pay.

5. Is it possible for an executive to receive acting pay in a succession of different positions without a short break in between?
The Directive on Executive Compensation indicates that successive acting appointments without a significant break between assignments do not require a new qualifying period; the directive does not set a specific period of time between acting periods.
The deputy head has discretion to determine what is reasonable, but a reasonable period of time would suggest that the acting appointments would be within two or three weeks of each other (e.g. 21 calendar days).

6. What salary treatment should be given to a non-executive who has been acting in an executive position for a significant period of time and is subsequently appointed to the position?
The employee should be appointed at the salary he/she was making while acting in the position. The salary treatment is the same as it would be if the employee was appointed to a different position at the same level of the position in which he/she had been acting. This salary treatment is described in the Directive on Executive Compensation, Appendix B, Salary Elements of Executive Compensation, section 8.9.

Deployment

7. How do we determine if a non-executive can be deployed into an EX position if a deployment cannot result in a promotion?
A non-executive can only be deployed into an EX position if the difference between the maximum salary of the EX position and the maximum rate of pay for the position held by the employee immediately prior to that appointment is less than 4%.

Non-Salary Elements - Hours of Work

8. Are executives entitled to a compressed work week or overtime pay?
No.

9. Are part-time executives entitled to overtime pay?
No. If a part-time executive is required to work longer hours than originally established on a regular basis, the terms of his/her letter of offer should be modified to reflect this change.

Leave Provisions

10. What is the vacation allowance for a new executive?
No. New executives are entitled to four weeks vacation entitlement upon appointment. Any vacation accumulated before becoming an executive is transferred provided that it is greater than the four weeks that the executive would receive upon appointment.

11. Do all part-time executives receive the 4.25% premium for hours worked in lieu of statutory holidays?
All part-time executives, whether they are indeterminate, determinate, or casual, are entitled to the 4.25% premium in lieu of statutory holidays, except when the holiday falls on a scheduled day of work.
In order to administer the 4.25% premium, departments have the option to either suspend pay for the particular holiday in question or have the executive work another business day in lieu of the statutory holiday.

12. When employees are promoted to the EX Group, can they carry forward their five-day one-time vacation entitlement if they have not used it before appointment?
Yes, the five days are carried forward. The executives do not lose them upon appointment to the EX Group. They are not treated as regular vacation leave and will not become part of the employees’ accumulated vacation credits.

13. Why aren’t executives entitled to a volunteer day?
The Policy on the Management of Executives does not have a separate provision for a volunteer day; executives who wish to do volunteer work can request Exceptional Leave with Pay for this purpose.

Parking

14. What is the standard number of days used for pro-rating parking reimbursements for executives?
An executive may receive up to a 50% reimbursement after providing proof of paid monthly parking; however, in special circumstances (e.g. where the executive was on a waiting list for a parking spot and paid the daily parking rate in the interim), he/she would be accommodated and reimbursed based on his/her own unique circumstances and on a prorated basis. Deputy heads are responsible for establishing internal guidelines for parking for executives within their respective organizations.

15. Is a non-executive employee acting in an executive position eligible for the 50-percent reimbursement of parking?
No. Non-executive employees who act in an executive position continue to follow the non-salary terms and conditions of their substantive position.

Non-Salary Elements of Executive Compensation for Executives Employed as Casual Workers

16. Is a part-time casual executive entitled to be paid 4.25% in lieu of holidays?
Yes, casual executives are eligible for 4.25% of their base salary, and are therefore not paid for statutory holidays.

17. Are casual executives entitled to salary revisions?
Yes, casual executives are eligible to receive economic increases if they are working prior to the authorization date of an increase. For example, if a casual EX-01 starts work on March 1 and an economic increase takes effect the following month on April 1 for EX-01s, that casual executive will be entitled to that economic increase as of April 1.

Special Deployment

18. What is the purpose of Executive Special Deployment?
Special Deployment allows deputy heads to deploy executives out of their substantive positions into unclassified duties and staff behind them for purposes of special projects, assignments, pre-retirement knowledge transfer or developmental purposes. Executive Special Deployment is not intended to be used in lieu of approved HR systems and processes in place for the core public administration. Therefore, its use is intended only in those situations where approved HR systems and processes do not apply, as described and defined in the policy and directive. Executive Special Deployment is not to be used for work that forms an ongoing departmental responsibility; this work should be described, classified and staffed using approved HR systems and processes. Special deployments are temporary in nature and are normally for a period of up to two years. Departments must stay within their quotas and provide an annual report to the Office of the Chief Human Resources Officer.

19. For how long can an executive be on an Executive Special Deployment?
An Executive Special Deployment is initially for a period of up to two years. In exceptional cases, deputy heads can extend the Executive Special Deployment by up to one additional year for a maximum of three years in total. This authority cannot be sub-delegated.

Directive on the Performance Management Program (PMP) for Executives

20. What is the Performance Management Program for executives?

The objectives of the Performance Management Program

To encourage excellent performance by setting clear objectives and rigorously evaluating the achievement of results
To recognize and reward performance
To provide a framework within which a consistent and equitable approach to performance management can be applied

Compensation is a central component of effective human resources management for recruiting, retaining, motivating and renewing the workforce required to deliver results to Canadians.

Executive compensation

Base salary
Performance pay
- At-risk pay
- Bonus pay
- Economic increase
- In-range salary movement

The Performance Management Program reports on the number of executives in each department who have earned performance pay for the year.

21. What is the difference between at-risk pay and bonus pay?
Executives receive a salary for performing their ongoing responsibilities. Part of their base salary includes variable pay that has to be re-earned every year based on their performance: what they achieved and how they achieved it. This performance-based variable pay is also called “at-risk pay” and has been in place since 1999. Under this system, executives are expected to deliver key results tied to their department’s business objectives, Government-wide program and management agendas. It is a percentage of base pay, which, based on performance, varies from year to year and is at the discretion of the deputy head.
It is not a pre-agreed lump-sum bonus target such as many executives earn in the private sector.
Bonus pay can only be awarded for exceptional achievements above and beyond the achievement of the commitments set out in the performance agreement.
No performance pay (at risk or bonus) is awarded for performance that does not meet expectations.

Executive Level	At-Risk Pay for 2010–11	Bonus for 2010–11
EX-1 to EX-3s	up to a maximum of 12%	up to a maximum of 3%
EX-4 to EX-5s	up to a maximum of 20%	up to a maximum of 6%

22. Do you need to qualify for at-risk pay in order to qualify for a bonus?
Yes. The two are related since executives receive at-risk pay when they meet the targets outlined in their performance agreement. Bonus pay can only be awarded for exceptional achievements above and beyond these targets.

Directive on Career Transition for Executives

Directive on Career Transition for Executives Frequently Asked Questions