President and CEO Compensation Policy

Approved by Board of Directors July 27, 2010

The Board of Directors of St. Joseph’s Health Care London (St. Joseph’s) is responsible for establishing policies to ensure that the organization is one of Canada’s pre-eminent Catholic health care organizations, contributing to the advancement of health care, education and research. To this end, it is critical that St. Joseph’s is able to attract and retain a highly skilled President and Chief Executive Officer (CEO) who will provide leadership to the organization in the course of implementing Board policies.

To ensure that St. Joseph’s is able to retain and attract the necessary executive leadership skills, the Board of Directors has established a compensation philosophy which is designed to maintain an attractive and competitive compensation package for the CEO.

Compensation Philosophy

The total compensation of the CEO shall be positioned between the average and the 75th percentile of the total compensation paid by a comparator group comprising small and medium-size academic health science centres and large community hospitals located in Ontario.

Compensation Structure

Total compensation has two components:  a) total cash compensation and b) benefits and perquisites.

Total cash compensation shall be provided by means of base salary and eligibility for a percentage of base salary referred to as "performance-based compensation”, as follows:

  1. A range shall be set for base salary, with the range maximum positioned at approximately the 50th percentile of market.  The range minimum will be set at approximate 85 per cent of the range maximum,  AND
  2. Performance-based compensation shall be set at 20 per cent of base salary.  The actual pay-out of any portion up to the 20 percent annual performance-based compensation shall be determined as a result of the CEO’s achievement of the pre-established performance goals for the year as evaluated by the Board Chair.

Benefits and perquisites shall be provided at approximate the market average.

Procedure

The Board of Directors, through the Executive Committee, shall review the total compensation of the CEO annually.

Any increase to the base salary of the CEO and the awarding of any portion of the performance-based compensation shall be subject to the incumbent meeting performance expectations and established goals as determined through the annual performance review process led by the Board Chair. The Executive Committee shall submit any recommendation for base salary increases and the awarding of any portion of the established annual performance-based compensation to the Board of Directors for approval. Any approved increases or payments are provided by the Board Chair in writing to the Chief Human Resources Officer for implementation.

A review of relevant market comparator data shall occur every three years or more frequently upon the request of the Board Chair.

This Board Policy shall be reviewed every three years, or if there is a major change in organizational strategy.

Definitions

  • Total Compensation is defined as having two components: a) total cash compensation and b) benefits and perquisites
  • Total Cash Compensation is defined as base salary and a pre-established percentage of base salary referred to as “performance-based compensation”

References

  • Bill 16 – Public Sector Compensation Restraint to Protect Public Services Act, 2010
  • Bill 46 – Excellent Care for All Act, 2010
  • Chief Executive Officer Absence Coverage Guidelines
  • Chief Executive Officer Succession Planning Guidelines
Last updated: Thu, 2015-02-05 14:38