BC PUBLIC SERVICE EXECUTIVE COMPENSATION

The New Compensation Framework

Decisions have now been made on the salary levels assigned to each individual BC Public Service executive under the new compensation framework introduced in August.

· The average salary for deputy ministers is now $217,758, representing an average increase of just over seven per cent including the salary increase necessary to implement a 10 per cent salary holdback.

· The average salary under the new framework for assistant deputy ministers is now $157,608, representing an average increase of 21 per cent including the salary increase necessary to implement a 10 per cent salary holdback.

· The deputy minister to the Premier has opted not to accept an increase in salary at this time.

· The holdback of each executive’s salary is dependent on their performance on a series of specific measures linked to building the corporate human resources of the BC Public Service. Under the new framework, the value of the holdback increased from five per cent to 10 per cent of each executive’s annual salary.

· Under the revised compensation framework effective Aug. 1, 2008, the maximum payable salary to deputy ministers increased from $221,760 to $299,215 and from $243,936 to $348,600 for the deputy minister to the Premier. The maximum achievable salary for assistant deputy ministers increased from $160,000 to $195,000.

· Unlike the rest of the BC Public Service, executives do not receive annual wage adjustments linked to the collective agreement, which have amount to 10.4 per cent over the term of the current agreement.

Comparisons to Other Employers

· Prior to the 2008 adjustment, assistant deputy minister salaries ranked tenth in Canada among other provinces and the federal government, and deputy minister salaries ranked sixth.

· Under these final salary levels, the actual average salary for B.C. deputy ministers and assistant deputy ministers is estimated to now rank fifth amongst the other Canadian jurisdictions.

· The maximums under the new framework are set at 83 per cent of federal equivalent levels, which reflects the recommendation of a 2001 analysis by the independent consulting firm Watson Wyatt.

· Linking salaries to the broader public sector would have meant higher levels. For example, public disclosure of public sector executive compensation in July showed:

o The top salaried position in the BC Public Service ranked 51^st out of 252 positions listed and behind 14 vice-president positions;

o Nineteen health authority positions were paid higher than the deputy minister of health.

o The salaries of the deputy minister of finance and deputy attorney general are also less that those of many vice-presidents in Crown agencies and universities.

Executive Salary Differentiation

· Recently, B.C. developed a model of differentiating assistant deputy minister positions based on the scope and impact of their role. Four ‘bands’ have been created, from ‘A’ to ‘D’ with ‘D’ being the top band. The percentage of assistant deputy ministers allocated to each of the bands is as follows:

o Band A (salary $100,500 to $140,000) – 11 per cent (13 positions) are in the band earning an average of $133,234 which is 68 per cent of the maximum of the range

o Band B (salary $140,000 to $165,000) - 51 per cent (60 positions) are in the band earning an average of $147,087, which is 75 per cent of the maximum of the range.

o Band C (salary $160,000 to $180,000) – 24 per cent (28 positions) are in the band earning an average of $166,296 which is 85 per cent of the maximum of the range.

o Band D (salary $175,000 to $195,000) – 14 per cent (16 positions) are in the range earning an average of $183,963 which is 94 per cent of the maximum of the range.

· There is also differentiation between associate deputy minister and deputy minister level positions:

o 66 per cent (26 positions) are compensated under $230,000 with an average salary of $205,748 which is 68 per cent of the maximum of the range;

o 34 per cent (14 positions) are compensated between $230,000 and $250,000 with an average salary of $237,400 which is 80 per cent of the maximum of the range;

o One position is compensated above $250,000 with a salary of $255,000, which is 85 per cent of the maximum of the range.

Executive Demographics and Recruitment

· The current average age of BC Public Service employees is 45. The average of deputy ministers is 51, and the average age of assistant deputy ministers is 52.

· Within 10 years, 51 per cent of deputy ministers and 65 per cent of assistant deputy ministers are expected to retire.

· Almost 55 per cent of current executive directors – the natural successors to deputy and assistant deputy ministers – are also expected to retire in the next decade.

· The average public service experience level for assistant deputy ministers and deputy ministers across the public service today is 16 years, but by 2015 about 60 per cent will have fewer than five years of public service experience.

· On average, an assistant deputy minister today has been at the assistant deputy minister-level for less than four years.

· Overall 61 per cent of all assistant deputy minister level positions have seen personnel changes since 2006, including retirements, resignations and internal moves.

· There are 41 deputy minister and equivalent and 117 assistant deputy minister and equivalent roles in the BC Public Service.

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For further details on the executive compensation framework, see www.mediaroom.gov.bc.ca/DisplayEventDetails.aspx?eventId=422


Media contact:	Bridgitte Anderson Press Secretary Office of the Premier 604 307-7177

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