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Managing Broader Public Sector Executive Compensation

Archived Backgrounder

Managing Broader Public Sector Executive Compensation

Treasury Board Secretariat

The Public Sector and MPP Accountability and Transparency Act (Bill 8) would, if passed, help strengthen accountability, oversight and transparency across the government and the broader public sector.

As part of Bill 8, the Broader Public Sector Executive Compensation Act, would, if passed, authorize the government to control compensation of executives in the broader public sector by establishing sector-specific hard caps and enforcement measures to ensure compliance. 


The proposed legislation would authorize the government to collect compensation information from designated employers and to establish compensation frameworks for designated executives at hospitals, community care access corporations, universities, colleges, school boards and hydro entities.

The government plans to bring forward amendments to the proposed legislation, which if passed, would enhance government authority over public sector executive compensation by extending it to other government organizations.

Compensation Frameworks 

If the proposed legislation is passed, the government would follow a principled approach for establishing compensation frameworks, which could address all elements of compensation, such as, but not limited to, salaries, pay at risk and benefits.

Compensation frameworks would be applicable to executives who could potentially earn $100,000 or more per year. Included would be CEOs, presidents, vice-presidents, chief officers, directors of education, supervisory officers, and other executives regardless of title.

The government is committed to developing appropriate and reasonable compensation frameworks based on consultation and research. This would include:

  • Consulting and liaising with stakeholders, including broader public sector representatives
  • Collecting and analyzing compensation information
  • Identifying and building in sector-specific considerations
  • Using a range of comparators to determine target median compensation, with a focus on public sector comparators

Ensuring Compliance

A series of proposed measures would ensure that organizations are in compliance with any applicable compensation framework. These measures include:

  • Providing the government with the ability to conduct audits
  • Requiring heads of organizations to attest to compliance with the compensation frameworks through a reporting period
  • Offence provisions to address wilful false reports, statements or attestations
  • Overpayment provisions under which employers could be required to repay any amount that exceeds what is authorized under the act


If the proposed legislation is passed and proclaimed into force, approval would be sought to issue a directive to collect compensation related information from broader public sector employers. The government would begin consultation with impacted stakeholders as compensation information is analyzed. If approved, compensation frameworks would be implemented in phases. 

Subject to the passing of the proposed legislation, the government would aim to begin the rollout of compensation frameworks approximately six months after the legislation comes into force.

This timeline would be dependent on the gathering of compensation information, stakeholder consultation, and framework development processes.

Building on Previous Actions

The proposed legislation would build on the actions taken by the government to manage executive compensation costs.

In 2008, the government implemented a wage freeze for MPPs and this will remain in effect until the budget is balanced.

Since the 2010 Ontario Budget, the government has implemented multiple initiatives to manage compensation in the public sector:

  • The Public Sector Compensation Restraint to Protect Public Services Act, 2010, froze compensation structures for employees who do not bargain collectively in the Ontario Public Service and broader public sector. 
  • Executive compensation at hospitals, school boards, colleges, universities and hydro entities has been restrained under the Broader Public Sector Accountability Act, 2010 since March 31, 2012.  All elements of compensation are frozen, including base salaries.

Inclusion of Other Government Organizations

The government is proposing to introduce an amendment during the Legislative Committee process that would add 64 broader public sector organizations including Ornge, LHINs, eHealth, Metrolinx, OLG and LCBO to the list of employers already captured under the proposed legislation.


Alcohol and Gaming Commission of Ontario

Algonquin Forestry Authority

Cancer Care Ontario

Chiropody Review Committee

Dentistry Review Committee

Deposit Insurance Corporation of Ontario

eHealth Ontario

Fire Marshal's Public Fire Safety Council

HealthForceOntario Marketing and Recruitment Agency

Higher Education Quality Council of Ontario

Human Rights Legal Support Centre

Office des télécommunications éducatives de langue française de l'Ontario (TFO)

Legal Aid Ontario

Liquor Control Board of Ontario

Local Health Integration Networks (14)

McMichael Canadian Art Collection


Metropolitan Toronto Convention Centre Corporation

Nawiinginokiima Forest Management Corporation

Niagara Parks Commission

Office of the Fairness Commissioner

Ontario Agency for Health Protection and Promotion

Ontario Educational Communications Authority (TV Ontario)

Ontario Electricity Financial Corporation

Ontario Energy Board

Ontario Food Terminal Board

Ontario Health Quality Council (Health Quality Ontario)

Ontario Immigrant Investor Corporation

Ontario Infrastructure and Lands Corporation (Infrastructure Ontario)

Ontario Lottery and Gaming Corporation

Ontario Mental Health Foundation

Ontario Northland Transportation Commission

Ontario Public Service Pension Board (Ontario Pension Board)

Ontario Racing Commission

Ontario Securities Commission

Ontario Trillium Foundation

Optometry Review Committee


Ottawa Convention Centre Corporation

Owen Sound Transportation Company

Province of Ontario Council for the Arts (Ontario Arts Council)

Provincial Judges Pension Board

Provincial Schools Authority

Royal Ontario Museum

Science North

Toronto Islands Residential Community Trust Corporation

Trillium Gift of Life Network

Walkerton Clean Water Centre

Workplace Safety and Insurance Appeals Tribunal

Workplace Safety and Insurance Board

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