In accordance with the Public Sector Salary Disclosure Act (often referred to as “Sunshine List”), that was passed in 1996, organizations that receive public funding from the Province of Ontario are required to disclose the names, positions, salaries and taxable benefits of employees who earn $100,000 or more within the calendar year. The 2015 list can be found on the Ministry of Finance website.
In this section you will find:
- A letter to the community from our Board Chair about the KGH Executive Compensation Program
- Information on the Executive Performance Management and Pay for Performance Program
- Links to a summary of the executive compensation plans and executive contracts
- Information on the Broader Public Sector Accountability Act - Perquisites Directive
Letter to the community about KGH Executive Compensation Program
Dear member of the community:
Kingston General Hospital (KGH) is fully committed to the principles of transparency and accountability. One of the many ways we are demonstrating this is to proactively disclose the provisions of our executive performance management plans and employment contracts.
The Board is committed to protecting the interests of taxpayers and strengthening the accountability of the hospital as an organization in receipt of public funds. We report publicly each quarter on the progress against each of our performance indicators that the hospital measures. Executive contracts reflect the provisions of the new Excellent Care for All Act and the Broader Public Sector Accountability Act including the Perquisites Directive. We can attest that KGH is fully compliant with the aforementioned legislations and directive.
KGH is the largest and most complex health care organization in our region. As leaders of a major academic health science centre, our executives are responsible for ensuring safe high quality care is provided for every patient, ensuring approximately $425M of financial and capital resources are effectively managed, and for providing oversight of 7,000 employees, physicians, volunteers and students. The KGH Board of Directors considered a number of factors when setting compensation for our executives including market standards, benchmarks and hospital-specific imperatives. Because of this, KGH has been able to attract and retain highly skilled and high-performing executives to steer our organization through massive change over the past five years.
The Board has put a rigorous performance management program in place that includes pay at risk as a portion of the total compensation of executives; the performance pay envelope was reduced and frozen as a result of: Bill 55 - The Strong Action for Ontario Act - 2012. We believe that the performance management compensation plans for our executives is responsible and that our approach will help ensure that KGH retains the best leadership that respects the use of Ontario’s health care dollars and continues to deliver on its strategic aim of “Outstanding Care, Always”.
Regards, Scott Carson Board Chair July 2014
Executive Performance Management and Pay for Performance Program
Overview of Approach:
Kingston General Hospital (KGH) has a comprehensive executive performance management program that includes pay at risk. Guided by Board policy, our performance management and compensation philosophy for executives may incorporate the following:
- Alignment of long term strategy and annual corporate plan milestones with individual performance goals
- Annual performance agreements with goals, measures and targets
- Quarterly review and reporting of progress against performance agreements
- Recognition and reward for performance against established targets at end of the fiscal year
A special Board committee, the Governance Committee (GC) is responsible for the oversight of the executive performance management and pay at risk program. The main focus of GC is on the Chief Executive Officer (CEO) and Chief of Staff (COS), both of who report directly to the Board. The CEO/COO is responsible for designing and implementing performance agreements for the rest of the executives as applicable that are aligned with those approved by the GC. The GC receives reports from the CEO on the performance of the executives and their progress against those agreements and overseas the allocation of pay at risk to ensure that it remains within the frozen pay for performance envelope as outlined in the Broader Public Sector Accountability Act.
Each year the Board sub-committee, GC, will establish performance agreements in consultation with the CEO and COS. These agreements specify the milestones and performance targets to be achieved for the upcoming fiscal year. The weighting of the eligible pay at risk for each of the agreed upon elements of the agreement are also identified. Once approved by the Board, the performance agreement is signed off by the Board Chair and CEO. Once the CEO agreement is confirmed, performance plans for the rest of the executives are created and they are aligned using similar frameworks.
Accordingly, our performance based compensation system can include performance against three categories:
- Strategic Directions - advancing strategic directions and Quality Improvement Plan targets (1 - 5% total cash compensation)
- Strategic Enablers - ensuring enablers support KGH strategy outcomes (2 - 9% total cash compensation)
- Achieving individual goals and targets (1.5 - 4% total cash compensation)
Of note is that the milestones, targets and pay at risk allocations for categories one and two can be the same for each of the executives as applicable. This approach helps to drive alignment and collective accountability across the executives for organization wide priorities. For category three, each individual can have a goal(s) that is specific to their roles and responsibilities. Executives have learning plans with 2-3 goals. The 360 degree feedback process is conducted for executives once every two/three years.
The GC monitors progress against the Performance Agreements on a quarterly basis and reports this to the Board. The CEO in turn, reports on a quarterly basis as to how the executives are doing against their individual performance agreements. Quarterly results that relate to the annual corporate plan and quality improvement plan are posted publicly on our website in the “KGH this Quarter” report.
At the end of the fiscal year, the GC does an in depth review of the performance of the CEO and COS, and then makes an assessment of whether or not they have succeeded in achieving the annual performance thresholds. Pay at risk amounts are not finalized until actual results are achieved and financial audits are complete. The GC makes a recommendation to the Board for allocations and any other compensation adjustments according to Board policy. Once CEO performance has been evaluated, the CEO/COO conducts performance reviews and allocates pay at risk pursuant to the frozen pay for performance envelope for the rest of the executives against results achieved.
Executive compensation plans and contracts:
- Summary of the executive compensation plans
- Interim President & Chief Executive Officer, Jim Flett
- EVP & Chief of Staff, Dr. David Zelt
- EVP & Chief Nursing Executive, Silvie Crawford
- VP & Regional VP Cancer Services, Brenda Carter
- VP & Chief Financial Officer, J'Neene Coghlan
- VP, Health Sciences Research, Dr. Roger Deeley
- VP & Chief Information Officer, Troy Jones
Broader Public Sector Accountability Act - Perquisites Directives
The Management Board of Cabinet issued this directive under the authority of the Broader Public Sector Accountability Act, 2010 (Part IV.1: Perquisites), for the Province of Ontario, Canada.
Effective August 2, 2011, the Directive established rules on perquisites (perks) where funding is provided from the Ontario Government or from public bodies under the Public Service of Ontario Act, 2006. The Directive sets out provisions for perquisites that are allowable and those that are not. A perquisite refers to a privilege that is provided to an individual or to a group of individuals, provides a personal benefit, and is not generally available to others.
This Directive applies to all hospital employees, Board members and appointed staff. It includes requirements to:
- Establish rules regarding perquisites;
- Terms and limitations on those rules;
- An accountability framework to ensure appropriate governance; and
- Provisions to make summary information on allowable perquisites publicly available.
The Perquisites Directive can be accessed on the Ministry of Finance website.
Kingston General Hospital’s Business Conduct policy, section 5.2 under Legal Compliance, meets the requirements outlined in the new Directive. The Hospital’s attestation which identifies all allowable perquisites is as follows:
- Car allowance for the CEO and for some members of the Executive is a job requirement, due to: on call responsibilities, community and stakeholder engagement, off-site meetings and travel distances beyond the local area.