Salary and performance-related pay envelope
 3.2 (1) A designated employer shall determine its salary and performance-related pay envelope for a pay year as follows, subject to any proration under subsection (3): P + (P × R) in which, “P” is the salary and performance-related pay envelope for the previous pay year for the designated employer, as it was prorated under subsection (3), and “R” is a rate of increase determined by the designated employer that does not exceed the maximum rate of increase in the salary and performance-related pay envelope, as determined under section 3.3. O. Reg. 400/17, s. 2. (2) A designated employer shall not determine a salary and performance-related pay envelope within one year after the last time it determined a salary and performance-related pay envelope under this section. O. Reg. 400/17, s. 2. (2.1) For the first pay year that a salary and performance-related pay envelope is determined under this section, the salary and performance-related pay envelope for the previous pay year for the designated employer is determined as follows: 1. Determine whether the designated employer’s terms of employment for its designated executives for the previous pay year provided for a limit on the total amount of performance-related pay that the designated employer’s designated executives were eligible to receive. The previous pay year limit may be a single amount, may be determined by adding up the limits that applied with respect to each designated executive position or may be determined in some other manner. 2. If there was a previous pay year limit described in paragraph 1, take the amount determined as follows, adjusted in accordance with paragraph 4: S + MAXPRP in which, “S” is the total amount of salary that the designated employer’s designated executives received in the previous pay year; and “MAXPRP” is the maximum amount of performance-related pay that the designated employer’s designated executives could have received in the previous pay year; if the terms of employment expressed this amount, in whole or in part, in relation to salaries, it is determined based on the salaries actually received — for example, if each designated executive was eligible to receive up to a specified percentage of their salary as performance-related pay, the maximum amount of performance-related pay is determined by totalling the amounts that are determined by, for each designated executive, multiplying the salary the designated executive actually received by the maximum percentage specified for that designated executive. 3. If there was not a previous pay year limit described in paragraph 1, take the total amount of salary and performance-related pay that the designated employer’s designated executives received in the previous pay year, adjusted in accordance with paragraph 4. 4. The adjustment referred to in paragraphs 2 and 3 is the following: i. Annualize the amounts attributable to positions that were vacant for part of the previous pay year. ii. Subtract the amounts attributable to positions that were eliminated in the previous pay year. O. Reg. 400/17, s. 2. (3) The salary and performance-related pay envelope is prorated if, during the pay year, (a) a designated executive position is created; (b) a person is hired into a designated executive position; (c) a designated executive position becomes vacant; or (d) a designated executive position is eliminated. O. Reg. 400/17, s. 2. (4) The prorated amount under subsection (3) shall be determined by the board of directors of the designated employer, or, if the designated employer does not have a board of directors, the equivalent governing body or officer of the designated employer. O. Reg. 187/17, s. 3.