The Government is committed to treating its employees fairly and consistently. Changes to executive total compensation reflect what has been agreed-upon by bargaining agents representing over 95,000 members of the core public administration. These changes include:

• Ending severance accumulation for voluntary departures of executives, deputy ministers and other Governor in Council appointees;
• Increasing base pay for these groups for a period of two years: 1.75% for 2011 and 1.5% for 2012 (this increase takes into account the elimination of severance accumulation); and
• Tying 40% of at-risk pay for the achievement of a corporate commitment linked to the all-of-government spending review, and the remaining 60% to individual performance.

These changes will be at no additional cost to Canadian taxpayers. Because departmental operating budgets are frozen, increases to base pay must be absorbed within current budgets.

The cessation of severance is expected to generate ongoing annual savings that will gradually increase to $31 million.

The Government thanks Carol Stephenson, Chair of the Advisory Committee on Senior Level Retention and Compensation, and the other distinguished members of the Committee for their commitment and their continued work. We are pleased that the Advisory Committee recognized the need for financial predictability for organizations in light of cost restraints.