The Alberta government is bringing excessive salaries for the province’s post-secondary presidents in line with the national average, eliminating perks and setting guidelines for health and retirement benefits under a new compensation framework.
Coming in April 15, this is the latest step in the government’s agencies, boards and commissions review, which is aiming to save the government about $33 million by cutting salaries and perks and eliminating bonuses for the province’s highest paid public sector executives. In February 2017, the province targeted the pay and perks at 23 of its public sector agencies, boards and commissions, including ensuring health benefits were aligned with those of public sector executives in other regions.
Read: Alberta eliminates bonuses, caps pay for public sector execs
The framework states that health benefits may be provided where the total annual cost for the designated public agency doesn’t exceed five per cent of the executive’s base salary; any form of retirement plan shouldn’t be greater than if the executive was a participant in the Management Employees Pension Plan; pay in lieu of a retirement plan or benefit can’t exceed 14.36 per cent of the executive’s base salary; and the provision of executive or private health benefits is prohibited.
“For far too long, the salaries of college and university presidents have been out of step with the public service, the national average and the expectations of Albertans,” said Marlin Schmidt, the province’s minister of advanced education. “We need to ensure that taxpayer dollars are being used in the best interests of students, staff and faculty. By lowering salaries and creating stronger controls on benefits, we’re making sure that public funding goes towards the classroom, where it belongs.”
Changes under the new framework include:
- Capping salary levels for post-secondary president positions and placing them into one of five levels based on roles and responsibilities;
- Eliminating executive bonuses;
- Limiting executive severance pay to a maximum of 52 weeks;
- Setting guidelines for parameters around paid holidays, vacation leave, general leave days and leaves of absence without pay;
- Prohibiting perks such as sports memberships, signing bonuses and executive allowances.
Read: Alberta workplace review includes more ‘worker-centred’ processes