Salary and performance-related pay cap
 3. (1) The salary and performance-related pay cap for a designated executive position or class of designated executive positions shall be calculated by, (a) selecting eight or more comparator organizations in accordance with subsection (2); and (b) performing the calculations set out in subsection (4), (5) or (6), as the case may be. O. Reg. 187/17, s. 3. (2) The selection of comparator organizations shall be in accordance with the following: 1. An organization may be selected as a comparator organization if the following conditions are satisfied: i. The organization is comparable to the designated employer with respect to three or more of the following factors: A. The scope of responsibilities of the organization’s executives. B. The type of operations the organization engages in. C. The industries within which the organization competes for executives. D. The size of the organization. E. The location of the organization. ii. The organization has at least one executive position that is comparable to the designated executive position or class of designated executive positions. iii. The selection of the organization is approved under subsection (3). 2. At least one Canadian public sector or broader public sector organization must be selected as a comparator organization. 3. Paragraph 2 does not apply with respect to a designated executive position if, i. the designated employer operates a nuclear facility as defined in the Nuclear Safety and Control Act (Canada), ii. it is a requirement of the designated executive position that the designated executive have practical experience in operating, designing, constructing or maintaining a nuclear facility or in supervising the controls of a nuclear reactor in a nuclear facility, iii. the designated employer has submitted, to the Canadian Nuclear Safety Commission, a description of the designated executive position and the qualifications of the designated executive and the Canadian Nuclear Safety Commission has not notified the designated employer, in writing, that the designated executive is not qualified for the position, iv. there are no Canadian public sector or broader public sector organizations to which the designated employer can be compared, and v. subparagraph 5 ii has been complied with and the Minister’s approval, referred to in paragraph 4, has been given. 4. An organization that is not a Canadian public sector or broader public sector organization may be selected as a comparator organization subject to the Minister’s approval. The designated employer may apply for approval in writing. 5. The application referred to in paragraph 4 shall include a business case articulating, i. the reasons the designated employer cannot be compared solely to Canadian public sector or broader public sector organizations, or ii. if the designated employer believes that the conditions in subparagraphs 3 i to iv are satisfied, the reasons the condition in subparagraph 3 iv, that there are no Canadian public sector or broader public sector organizations to which the designated employer can be compared, is satisfied. O. Reg. 187/17, s. 3. (3) The minister whose ministry funds, oversees or otherwise usually deals with the designated employer shall approve, in writing, the selection of comparator organizations unless, in the opinion of the minister, the designated employer failed, in selecting the comparator organizations, to properly apply subparagraph 1 i of subsection (2). O. Reg. 187/17, s. 3. (4) If all of the comparator organizations selected under subsection (2) are Canadian public sector or broader public sector organizations, the salary and performance-related pay cap shall be calculated by, (a) determining the annual salary and performance-related pay that may be paid for the comparator organizations’ executive positions that are comparable to the designated executive position or class of designated executive positions; (b) selecting a percentile that is no greater than the 50th percentile of the amounts determined under clause (a); and (c) determining the amount that is at the percentile selected under clause (b). O. Reg. 187/17, s. 3. (5) If some but not all of the comparator organizations selected under subsection (2) are Canadian public sector or broader public sector organizations, the salary and performance-related pay cap shall be calculated by, (a) for comparator organizations that are Canadian public sector or broader public sector organizations, determining the annual salary and performance-related pay that may be paid for the comparator organizations’ executive positions that are comparable to the designated executive position or class of designated executive positions; (b) selecting a percentile that is no greater than the 50th percentile of the amounts determined under clause (a); (c) determining the amount that is at the percentile selected under clause (b); (d) performing the same calculations required under clauses (a), (b) and (c) for comparator organizations that are not Canadian public sector or broader public sector organizations; (e) multiplying the amount determined under clause (c) by at least 50 but less than 100 per cent; (f) multiplying the amount determined under clause (d) by a percentage equal to 100 less the percentage applied under clause (e); and (g) adding the amounts determined under clauses (e) and (f). O. Reg. 187/17, s. 3. (6) If none of the comparator organizations selected under subsection (2) are Canadian public sector or broader public sector organizations, the salary and performance-related pay cap shall be calculated by, (a) determining the annual salary and performance-related pay that may be paid for the comparator organizations’ executive positions that are comparable to the designated executive position or class of designated executive positions; (b) selecting a percentile that is no greater than the 50th percentile of the amounts determined under clause (a); and (c) determining the amount that is at the percentile selected under clause (b). O. Reg. 187/17, s. 3.