Three years after the provincial government set compensation caps for crown corporation CEOs, more than half earn more than the government limits, according to a B.C. Auditor General's report released Tuesday.
This is because 54% of current crown corporation executives were CEOs before the new limits took effect and have indefinite term employment contracts. The report said it will take years for the new caps to take effect as these CEOs retire and new executives are hired.
The government, however, must improve needed mechanisms to ensure that the formal limits are consistently being followed. The report found that bodies set up to provide a forum for human resource management and labour relations issues is not operating effectively.
While crown corporations have policies and procedures in place to manage executive compensation, human resources committees are not keeping minutes of their discussions and decisions, which the auditor general said is not considered a good practice.
The report found processes in place to establish employee performance expectations and evaluating results were not consistently being followed.