Performance pay for Executives for the 1996-1997 fiscal year

Date: January 9, 1998

To: Directors of Personnel

Subject: Performance pay for Executives for the 1996-1997 fiscal year

I am pleased to provide you with a copy of correspondence about performance pay for the Executive Group for the 1996-1997 fiscal year that has been sent to your deputy head.

In addition to implementing performance pay effective July 1, 1997, deputy heads are authorised to address compression and inversion situations in the EX Group. This is to be managed within the performance pay budget which, for departments that have 20 or more EXs, is limited to 5% of your EX Group payroll as of June 30, 1997. (Small departments and agencies should refer to the table in the Salary administration plan for the formulae they are to use to calculate their budgets.) After salaries have been adjusted on the basis of assessed performance, there may be some individuals whose rate of pay remains below 90% of the job rate for her/his substantive EX level. When this occurs, and when the individual's performance has been rated at least fully satisfactory, the deputy head may adjust the salary to 90% of the job rate.

At the conclusion of this exercise we will need information from all departments about the application of performance pay, as in past years. Specifics of the reporting requirements are provided at Annex C.

The Treasury Board has not yet addressed performance pay for other, non-Executive excluded employees such as lawyers or AS-7s and AS-8s or PE-6s for example. Secretariat officials will communicate with departments about these other communities as soon as there is any information available.

You may contact the staff of the Executive and Excluded Groups Compensation unit, Human Resources Branch at 952-9067 or 952-3278 if you require further information.

Alain Jolicoeur
Chief Human Resources Officer
Human Resources Branch