We are currently moving our web services and information to Canada.ca.

The Treasury Board of Canada Secretariat website will remain available until this move is complete.

Performance Management Program for Executives (EXPMP) 2013-2014 Budget Instructions

Archived information

Archived information is provided for reference, research or recordkeeping purposes. It is not subject à to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

Table of contents

These instructions are to be read in conjunction with the Directive on the Performance Management Program (PMP) for Executives and the Directive on Executive Compensation and apply to the 2013-2014 performance management cycle.

The corporate commitment was introduced in 2011 as part of the Performance Management Program for Executives (EXPMP), representing at that time 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.

What's New in 2013-2014 for the Corporate Commitment?

The following changes have been made to the administration of the corporate commitment for the 2013 2014 performance management cycle:

  • The portion of at-risk pay for achievement towards the government-wide corporate commitment is reduced from 40 percent to 33 percent;
  • The portion of at-risk pay for achievement towards individual commitments is increased from 60 percent to 67 percent;
  • The same five-level rating scale used to evaluate performance against individual commitments will be used to evaluate achievements against the corporate commitment; and,
  • Deputy heads will have flexibility to determine how they will assess their executives against the corporate commitment. There will be no centrally-led organizational assessment process.

The wording of the corporate commitment for 2013-2014 has been revised to:

To renew and transform business processes through the effective implementation of cost-reduction and efficiency improvement initiatives as identified in Deficit Reduction Action Plan (DRAP) and other government-wide or departmental initiatives, in keeping with the Government's commitment to return to balanced budgets in 2015.

Performance Ratings

Executives will be assessed against their individual commitments and corporate commitment using the five-level rating scale described below, and will receive two (2) performance ratings as follows:

  • A rating reflecting results achieved against their individual commitments and of how the results were achieved (i.e. demonstration of the current Key Leadership Competencies); and,
  • A rating reflecting their contribution towards the achievement of the government-wide corporate commitment.

Rating Scale

Unable to Assess (Level 0):
Performance could not be assessed for a variety of reasons, such as having worked an insufficient amount of time in the position to adequately evaluate performance.
Did Not Meet (Level 1):
Did not achieve performance expectations.
Succeeded - (Level 2):
Did not fully succeed in meeting performance expectations or, succeeded in a position of much lesser scope and complexity compared to other executives at the same level.
Succeeded (Level 3):
Fully achieved performance expectations.
Succeeded + (Level 4):
Exceeded performance expectations, or, fully succeeded in a position of much greater scope and complexity compared to other executives at the same level.
Surpassed (Level 5):
For truly exceptional performance that went significantly beyond expectations.

Performance Pay

As part of the EXPMP, executives are eligible to receive performance pay. Performance pay includes the following elements:

At-risk pay:

Calculated as a portion of base pay that must be re-earned each year based on the level of achievement against corporate and individual commitments. To be eligible for at-risk pay, an executive must obtain a rating of "Succeeded –" (Level 2) for both the corporate and individual commitments See footnote 1. The maximum percentages of at-risk pay executives are eligible to receive in 2013-2014 remain the same as in 2012-2013 (table below).

At-risk pay is divided into two components:

  • Individual at-risk pay: 67% of at-risk pay is linked to the executive's level of achievement towards their individual commitments; and,
  • Corporate at-risk pay: 33% of at-risk pay is linked to the executive's level of achievement towards the corporate commitment.
Bonus:

Calculated as a portion of base pay that, in addition to at-risk pay, is only awarded to those individuals who have achieved performance that has surpassed expectations. The maximum percentages of base pay executives are eligible to receive as bonus in 2013-2014 remains the same as in 2012-2013.

To be eligible for a bonus, an executive must obtain:

  • A rating of “Surpassed” (Level 5) on their individual commitments for the entire performance management cycle; and,
  • The maximum percentage of individual at-risk pay

Calculation of Performance Pay

  • Executives at the EX-01 to EX-03 levels and other groups and levels subject to the Directive on the Performance Management Program (PMP) for Executives are eligible to up to 15% of their March 31, 2014 salary (4% for the corporate commitment + 8% for individual commitments + 3% as bonus);
  • Executives at the EX-04 and EX-05 levels are eligible to performance pay up to 26% of their March 31, 2014 salary (6.6% for the corporate commitment + 13.4% for individual commitments + 6% as bonus).
Individual At-risk Pay and Bonus
Individual Performance Rating Individual At-Risk Pay Bonus
2Applies to EX-01, EX-02, EX-03, and all other groups and levels subject to the Directive on the Performance Management Program (PMP) for Executives.
Unable to assess (Level 0) Not eligible Not eligible
Did not meet (Level 1) Not eligible Not eligible
Succeeded – (Level 2) EX-01 to EX-03 See footnote 2: up to 8%
EX-04 and EX-05: up to 13.4%
Not eligible
Succeeded (Level 3) Not eligible
Succeeded + (Level 4) Not eligible
Surpassed (Level 5) EX-01 to EX-03 See footnote 2: up to 3%
EX-04 and EX-05: up to 6%

Corporate At-Risk Pay
Corporate Performance Rating Corporate At-Risk Pay
3Applies to EX-01, EX-02, EX-03, and all other groups and levels subject to the Directive on the Performance Management Program (PMP) for Executives.
Unable to assess (Level 0) Not eligible
Did not meet (Level 1) Not eligible
Succeeded - (Level 2) EX-01 to EX-03 See footnote 3: up to 2.0%
EX-04 and EX-05: up to 3.3%
Succeeded (Level 3) EX-01 to EX-03 See footnote 3: up to 3.2%
EX-04 and EX-05: up to 5.3%
Succeeded + (Level 4) EX-01 to EX-03 See footnote 3: up to 3.6%
EX-04 and EX-05: up to 5.9%
Surpassed (Level 5) EX-01 to EX-03 See footnote 3: up to 4.0%
EX-04 and EX-05: up to 6.6%

The maximum percentage of at-risk pay for individual commitments can be assigned anywhere in the rating scale, i.e., the maximum percentage of at-risk pay does not necessarily have to be assigned to the highest rating level.

Eligibility for In-Range Salary Movement and Salary Revision

  • Executives who receive a rating of “Unable to assess” (Level 0) are eligible only for salary revision.
  • Executives who receive a rating of “Did not meet” (Level 1) are eligible for neither the salary revision nor in-range salary movement.
  • Executives who receive a rating of “Succeeded –” (Level 2) or greater are eligible for both the salary revision and in-range salary movement.
Individual Performance Rating Salary Revision In-Range Salary Movement
Unable to assess (level 0) Eligible Not eligible
Did not meet (level 1) Not Eligible Not eligible
Succeeded – (level 2) Eligible Eligible
Succeeded (level 3) Eligible Eligible
Succeeded + (level 4) Eligible Eligible
Surpassed (level 5) Eligible Eligible

EXPMP Spending Limits

  • EXPMP spending limits are calculated as a percentage of organizational payroll based on the salaries of employees paid as executives on March 31, 2014. Spending limits may not be exceeded.
  • The percentage of the EX payroll that is used to calculate the spending limits varies according to the number of executives at the different levels. Two separate amounts are calculated: one for EX-01 to EX-03, and one for EX-04 and EX-05. These amounts may be added together to calculate a single EXPMP spending limit. The total departmental budget for performance awards can be distributed in any combination amongst all levels.

The following tables provide more detail.

Spending Limits for Executives at the EX-01 to EX-03 Levels
Number of Executives
at the EX-01 to EX-03 levels
Percentage of March 31, 2014 EX Payroll
1 15.0%
2 13.4%
3 12.8%
4 12.5%
5 12.4%
6 12.3%
7 12.2%
8 12.1%
9 12.1%
10 and over 11.7%

Spending Limits for Executives at the EX-04 and EX-05 Levels
Number of Executives at the EX-04 and EX-05 levels Percentage of March 31, 2014 EX Payroll
1 26.0%
2 20.8%
3 19.0%
4 18.1%
5 and over 15.5%
  • In-range salary movement amounts and salary revisions are not funded from the EXPMP budget envelope.
  • For groups and levels other than the EX group that are subject to the Directive on the Performance Management Program (PMP) for Executives performance pay budget calculations are based on the instructions for executives at EX-01 to EX-03 levels, however these budgets are not part of the EXPMP spending limits.

Other Considerations

Executives on Secondment:
If not otherwise specified in the secondment agreement, the organization where the executive works on March 31, 2014 is responsible for including the executive's salary when calculating its EXPMP spending limit and for payment of performance pay, if applicable.
Movement between organizations during the performance cycle:
The organization where the executive works on March 31, 2014 is responsible for including the executive's salary when calculating its EXPMP spending limit and for payment of performance pay, if applicable.

Footnotes

  • Return to footnote reference 1Executives on Interchange Canada assignments to organizations that are not subject to the government-wide corporate commitment are not eligible for corporate at-risk pay, but remain eligible for individual at-risk pay.
Date modified: