Ontario proposes pay caps for public sector execs

The Government of Ontario has introduced legislation that would authorize it to establish compensation frameworks, including sector-specific hard caps for senior executives in the broader public sector.

The government says if the Public Sector and MPP Accountability and Transparency Act, 2014 is passed, it would authorize the government to obtain all compensation-related information, including contracts.

Compliance and enforcement measures would include requiring heads of organizations to submit attestations confirming compliance with the compensation frameworks, requiring heads of organizations to repay any amount that is above the compensation frameworks as a debt to the Crown and providing the government with the ability to conduct audits to verify compliance with the compensation frameworks.

Bill 179 would also amend the Broader Public Sector Accountability Act, 2010 to require broader public sector organizations to publish their business plans and other relevant financial documentation.