Terms of compensation framework
  2. The terms of the compensation framework are as follows: 1. The salary and performance-related pay that a designated employer provides for a designated executive position must not exceed the salary and performance-related pay cap for the position or for the class of positions to which the position belongs, as calculated under section 3 and adjusted under section 3.1. 1.1 The total salary and performance-related pay that a designated employer provides to all of its designated executives for a pay year must not exceed the salary and performance-related pay envelope for that pay year for that designated employer, as determined under section 3.2. 2. The salary and performance-related pay caps calculated for a designated employer in respect of its designated executive positions, i. shall be recalculated under section 3 in the event of significant organizational restructuring, and ii. may be recalculated under section 3 in respect of one or more designated executive positions at any other time if recalculation is warranted in the circumstances. 2.1 The maximum rate of increase in the salary and performance-related pay envelope determined under section 3.3 for a designated employer, i. shall be determined when the salary and performance-related pay caps are calculated under section 3 for that designated employer, ii. shall be re-determined whenever a salary and performance-related pay cap is recalculated under section 3 for the designated employer in respect of one or more designated executive positions or classes of designated executive positions, iii. shall be re-determined whenever the designated employer provides a designated executive with any additional element of compensation, as allowed under paragraph 5, and iv. shall not be determined or re-determined at any other time. 3. A designated employer shall not provide the following elements of compensation to a designated executive, subject to any entitlement to the element under the Employment Standards Act, 2000: i. Payments or other benefits provided in lieu of perquisites. ii. Signing bonuses. iii. Retention bonuses. iv. Cash housing allowances. v. Insured benefits that are not generally provided to non-executive managers. vi. Termination payments, including payments in lieu of notice of termination, and severance payments that in total equal more than 24 times the average monthly salary of the designated executive. vii. Termination or severance payments that are payable in the event of termination for cause. viii. Paid administrative leave, unless provided to the head of a college or university or another designated executive who is part of or will return to the faculty at a college or university. ix. Paid administrative leave that accrues at a rate in excess of 10.4 paid weeks per year. x. Payments in lieu of administrative leave. 4. A designated employer shall not provide an element of compensation, other than salary and performance-related pay, to a designated executive unless the element is also generally provided, in the same manner and relative amount, to non-executive managers. 5. Paragraph 4 does not apply if the element is required for the performance of the designated executive position’s functions or is otherwise required for critical business reasons. 6. A designated employer shall not do any of the following unless it is approved 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: i. Increase the salary that the designated employer provides to a designated executive. ii. Provide to a designated executive prorated salary and performance-related pay that exceeds the prorated salary and performance-related pay of the previous holder of the designated executive position. 7. A designated employer shall engage in public consultations in which members of the public have a reasonable opportunity to provide comments on the manner in which the designated employer determines the compensation it may provide to its designated executives in accordance with this framework. O. Reg. 304/16, s. 2; O. Reg. 187/17, s. 2.