Technical Budget Instructions 2012-2013 for the Performance Management Program for Executives (EX PMP)

These instructions must be read in conjunction with the Directive on the Performance Management Program for Executives.

The corporate commitment was introduced in 2011 as part of the Performance Management Program for Executives (EX PMP), representing 40% of eligible individuals' at-risk pay.

The aim of the corporate commitment is to encourage enterprise-wide outcomes in support of the Government's priorities. It is designed to foster continued efforts on cost containment, and to reflect the role of senior public servants in promoting a workplace committed to stewardship, managing for excellence and improving productivity in the service of Canadians.

2012-2013 Corporate Commitment

The 2012-2013 corporate commitment reads as follows:

To implement effectively, the cost-reduction and efficiency improvement initiatives identified in DRAP and in other government-wide or departmental initiatives.

Performance Ratings

Executives will receive two (2) performance ratings for the 2012-2013 PMP cycle:

• a single performance rating related to the corporate commitment will be determined for each organization and this rating will become the corporate rating for all eligible individuals within the same organization;
• An individual rating determined as in previous years, based on the level of achievement of individual commitments.

2012-2013 EX PMP Budgets

In line with Budget 2010 restraint measures on operating budgets, there will be no additional funding provided to departments from the Compensation Reserve for salary increases and the effects of these increases on PMP budgets.

1. Two separate budget amounts are calculated:
   • the budget for performance pay for EX-01 to EX-03, and
   • the budget for performance pay for EX-04 and EX-05.
2. The two amounts may be added together to provide a single envelope available for performance pay.
3. The percentage that is used to calculate the departmental budget varies according to the number of executives at the EX-01 to EX-03 levels and the number of executives at the EX-04 and EX-05 levels. Tables 1 and 2, which follow, provide the budget percentages available for performance pay.
4. The total departmental budget for performance awards can be distributed in any combination amongst all levels.

In-range salary movement is not funded from the Performance Management Program budget envelope.

Budget for Executive Performance Pay 2012-2013

PMP Award Eligibility: 2012-2013

As part of the EX PMP, executives are eligible to receive performance pay, which includes the following elements:

At-Risk Pay: Portion of pay which must be re-earned each year following a thorough assessment of the individual's performance and is tied to the level of achievement of individual and corporate performance goals. The maximum percentages of at-risk pay executives are eligible to receive remain the same as in 2011-2012 (Table below). At-risk pay is divided into two components:

• 40% of at-risk pay is based on the level of achievement of the corporate commitment; and
• 60% of at-risk pay is based on the level of achievement of individual commitments.

Bonus: Only awarded to those individuals who have achieved outstanding performance. The maximum percentages executives are eligible to receive as bonus remains the same as in 2011-2012. To be eligible for a bonus, executives must obtain:

• A rating of 5 (Surpassed) for their individual commitments; and
• The maximum percentage of at-risk pay for their individual commitments.

How to calculate Performance Pay

The maximum allowable percentages for performance pay for executives remain the same as in 2011-2012:

• EX-01 to EX-03 are eligible to receive up to 15% (4.8% for the corporate commitment + 7.2% for individual commitments + 3% as bonus) of their March 31, 2013salary; and
• EX-04 and EX-05 are eligible to receive up to 26% (8% for the corporate commitment + 12% for individual commitments + 6% as bonus).

The following table contains the performance awards that can be made available, according to the level of the organization's performance on the corporate commitment:

The following table contains the performance awards that can be made available to executives, based on the level of achievement of their individual commitments:

Contacts

Questions related to the application of these instructions to EX performance awards should be directed to:

Interpretations Team

Executive Policies
Executive Policies and Talent Management Sector
Office of the Chief Human Resources Officer
Contact EMP-PGCS by email: EMP-PGCS@tbs-sct.gc.ca