Table of Contents

• Corporate Commitment
• Performance Ratings
• Rating Scale
• Performance Pay
• Calculation of Performance Pay
• Eligibility for In-Range Salary Movement and Salary Revision
• EXPMP Spending Limits
• Other Considerations
• Contacts

These instructions are to be read in conjunction with the Directive on the Performance Management Program (PMP) for Executives (the Directive) and the Directive on Executive Compensation and apply to the 2014-2015 performance management cycle.

Corporate Commitment

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

For 2014-2015, the corporate commitment, which is to be included in every executive performance agreement reads as follows: 

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

• A rating reflecting results achieved against their individual commitments and 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, in addition to salary, executives are eligible to receive performance pay. Performance pay includes the following elements:

1. 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, executives must obtain a rating of "Succeeded –" (Level 2) or higher for both the corporate and individual commitments. The maximum percentages of at-risk pay executives are eligible to receive in 2014-2015 remain the same as in 2013-2014 (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 of their individual commitments; and
   • Corporate at-risk pay: 33% of at-risk pay is linked to the executive's contribution towards the achievement of the corporate commitment.

   Note: Executives 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.

2. 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 2014-2015 remains the same as in 2013-2014. 

   To be eligible for a bonus, an executive must:

   • Have been on strength in a position or functions subject to the directive for the entire performance cycle;
     • In cases where an executive was promoted or acting during the cycle, he/she must have been at the higher level position for at least ten (10) months in the cycle;
   • Obtained a rating of "Surpassed" (Level 5) on their individual commitments; and
   • Obtained 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 for performance pay of up to 15% of their March 31, 2015 salary (4% for the corporate commitment + 8% for individual commitments + 3% as bonus);
• Executives at the EX-04 and EX-05 levels are eligible for performance pay of up to 26% of their March 31, 2015 salary (6.6% for the corporate commitment + 13.4% for individual commitments + 6% as bonus).

In determining performance pay, the importance and impact of results achieved by the executive and his or her demonstration of the Key Leadership Competencies in achieving these results as well as the time spent in the job during the cycle are taken into consideration.

Eligibility for In-Range Salary Movement and Salary Revision

• Executives who obtain a rating of "Unable to assess" (Level 0) are eligible only for salary revision.
• Executives who obtain a rating of "Did not meet" (Level 1) are eligible for neither the salary revision nor in-range salary movement.
• Executives who obtain a rating of "Succeeded –" (Level 2) or higher are eligible for both the salary revision and in-range salary movement.

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, 2015. Spending limits may not be exceeded.
• The organizational spending limits for EXPMP are calculated as follows: a percentage of the payroll of EX-01s to EX-03s, and a percentage of the payroll for EX-04 and EX-05s. These amounts may be added together to calculate a single EXPMP budget envelope. 

The following tables provide more detail.

• 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 spending limit 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, 2015 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, 2015 is responsible for including the executive's salary when calculating its EXPMP spending limit and for payment of performance pay, if applicable.

Contacts

For further information on the EXPMP, please direct your inquiries to your departmental Human Resources Services.

For questions on the EXPMP, departmental Human Resources Services should contact Executive Policies Directorate, Office of Chief Human Resources Officer by email at emp-pgcs@tbs-sct.gc.ca.