Public Sector Executive Compensation Reporting Form

Transcription

1

2 Public Sectr Executive Cmpensatin Reprting Frm British Clumbia Lttery Crpratin Reprting fr Fiscal Year 2015/16 Statement f Executive Cmpensatin May 2016 Table f Cntents Attestatin Letter Item 1 General Prvisins Item 2 Cmpensatin Discussin and Analysis Item 3 Summary Cmpensatin Table

3 Statement f Executive Cmpensatin 1.1 PURPOSE BCLC is required t disclse all cmpensatin prvided t the Chief Executive Officer and the next fur highest paid executives fr the services they have prvided t the rganizatin. This dcument utlines the design, prvisins and ttal value f executive cmpensatin fr the fiscal year ending March 31, 2016 fr the British Clumbia Lttery Crpratin (BCLC). 2.1 COMPENSATION DISCUSSION AND ANALYSIS Cmpensatin Philsphy BCLC s cmpensatin philsphy and plan is aligned t a cmmn cmpensatin philsphy fr the B.C. Public Sectr and has embdied the fllwing fur cre principles: Perfrmance Cmpensatin prgrams supprt and prmte a perfrmance-based rganizatinal culture. Differentiatin Differentiatin f salary is supprted where there are differences in the scpe f the psitin within an rganizatin, and/r due t superir individual team cntributins. Accuntability Cmpensatin decisins are bjective and based upn a clear and well dcumented business ratinale that demnstrates the apprpriate expenditure f public funds. Transparent Cmpensatin prgrams are designed, managed and cmmunicated in a manner that ensures the prgram is clearly understd by emplyees and the public while prtecting individual persnal infrmatin.

4 BCLC s Guiding Principles fr Reward and Cmpensatin 1. Merit-based cmpensatin We will differentiate cmpensatin and rewards fr high perfrming emplyees. 2. Externally cmpetitive We strive t pay base salaries at median (50 th percentile) f a rle s market rate. 3. Internally equitable High-perfrming emplyees will prgress thrugh the range at a faster pace than accmplishing emplyees as perfrmance achievement is taken int accunt fr mvement thrugh the range. 4. Relevant cmparatrs The market will be based n cmparable crwn crpratins and natinal jurisdictins, with the exceptin f special market rles which will include specific private sectr rganizatins (aligned by rle, market, and gegraphy). 5. A ttal rewards perspective We will cmmunicate a hlistic view f rewards t staff and leadership that includes base cmpensatin (salary, hldback, benefits) alng with develpment, recgnitin, and ther quantifiable rewards that are prvided t emplyees. 6. Transparent and accuntable Practices will be transparent and accuntable t emplyees, leadership, the Bard f Directrs, and key public sectr stakehlders. Ttal Rewards Overview The cmpensatin prgram includes bth a base pay and hldback incentive cmpnent. The hldback incentive is applicable t management and executive. All management and executive emplyees have a prtin f their salary at risk, payable subject t the achievement f crprate and individual bjectives. Equity is achieved thrugh a frmalized jb evaluatin system that evaluates jbs and level f cmpensatin n the basis f cmplexity. Emplyees prgress thrugh a salary range based n individual perfrmance and mastery f the jb. The Benefits and Wrk/Life balance cmpnent f the Ttal Rewards package is designed t prvide cmpetitive and cmprehensive cverage fr emplyees and their families and t recgnize the imprtance f wrk life balance in being a cntributr t a high perfrmance culture. Any Ttal Rewards ffered must be in cmpliance with any gvernment regulatins and guidelines in place.

5 2.1.2 Gvernance The Bard f Directrs and the Human Resurces and Cmpensatin Cmmittee (HR&C) have versight f BCLC s executive cmpensatin. The terms f reference (as it pertains t ttal cmpensatin) are utlined belw: Bard f Directrs Mnitr and, at least annually, review the CEO s perfrmance against agreed upn annual bjectives; Apprve the CEO s cmpensatin Review cmpensatin plans fr senir management including salary, incentive, benefit and pensin plans; Apprve certain matters relating t all emplyees, including: The Crpratin s brad cmpensatin strategy and philsphy; New benefit prgrams r material changes t existing prgrams; and Material changes t the emplyee pensin plans; Human Resurce and Cmpensatin Cmmittee Annually review and recmmend t the Bard fr apprval the Ttal Cmpensatin philsphy and principles, ensuring they meet applicable Gvernment requirements Annually review and apprve the salary plan (including, if applicable, merit increase budget) fr the upcming fiscal year; Annually review and apprve the resurce plan (prpsed FTE) fr the upcming fiscal year; Review and recmmend t the Bard fr apprval any material changes t benefit prgrams; and Fr purpses f administering the CEO/Executive/Management incentive hldback plans, review and recmmend t the Bard fr apprval: The crprate gals fr the next fiscal year The CEO gals fr the next fiscal year; and The incentive hldback plan payut after fiscal year-end results are cnfirmed Review and make recmmendatins t the Bard respecting the terms and cnditins f the pensin plans f which BCLC is an administratr. Review the perfrmance incentive plan and make recmmendatins t the Bard regarding apprval.

6 2.1.3 Frms f Cmpensatin Ttal cmpensatin fr the Executive includes base salary, hldback incentive, benefits, pensin, supplementary pensin, and vacatin. Fllwing is a descriptin f each ttal cmpensatin element. Base Pay BCLC s cmpensatin plan is market-based and salary ranges are reflective f the 50 th percentile f the market. Salaries are allcated thrugh a frmal jb evaluatin prcess and within apprved salary bands. Annual salary increases fr the Executive are determined based n individual perfrmance. The salary freeze fr management and executive emplyees annunced September 12, 2012 remains in effect. Therefre, n perfrmance-based salary increases were implemented in fiscal 2015/16. Hldback Incentive BCLC s Hldback Incentive is aimed at directly linking emplyee perfrmance t pay, ensuring that accuntability cascades dwn thrugh the rganizatin. Success is measured n the achievement f bth crprate bjectives and individual bjectives, aligning emplyee cntributins t the strategic pririties f the rganizatin. BCLC s Hldback Incentive is earned each year based n the achievement f a financial trigger, crprate bjectives and individual bjectives. The hldback incentive plan is nt remunerated (crprate r individual) if the financial trigger is nt achieved. The prcess is as fllws: The HR&C Cmmittee f the Bard reviews and recmmends t the Bard, the apprpriate crprate bjectives and targets. The Service Plan, which is apprved by the Ministry, and the business plan, which is apprved by the Bard f Directrs drives the verall crprate and individual gals set fr the Executive. The CEO s gals are apprved by the Bard f Directrs. The CEO s gals are cascaded t the Executive team and all gals established directly link t the crprate strategic pririties. The HR&C Cmmittee reviews the attainment f crprate gals at the end f the fiscal year and recmmends t the Bard the level f achievement.

7 Fiscal Year 2015/16 Targets Crprate Gals Threshld Target Net Incme befre taxes (millins) 1,242 1,269 Net Win (millins) - 2,240 Benefit Plan BCLC prvides a flexible benefit prgram, which gives emplyees the flexibility t chse medical, extended health, dental, AD&D, and life insurance. Lng Term Disability premiums are paid fr by the emplyee. Vacatin Twenty days f vacatin is prvided fr executive upn jining BCLC, unless therwise negtiated as part f the emplyment cntract. Annual rate f vacatin accrual increases at established years f service until the maximum accrued vacatin rate is met. The maximum accrued vacatin prvided t Executive is 35 days. Thirty days vacatin is prvided t the CEO. Registered Pensin Plan (RPP) BCLC prvides a defined benefit pensin plan which is a shared cst between the emplyee and the Crpratin. Emplyees cntribute 4.4% f their mnthly earnings that are less than r equal t the Year s Maximum Pensinable Earnings (YMPE) and 6.0% f their annual earnings that are in excess f the YMPE. The Crpratin cntributes additinal amunts necessary t pay fr the prmised pensin. An actuary wh is certified in the determinatin f pensin funding requirements calculates the amunt f the Crpratin s cntributin. Supplemental Registered Pensin Plan (SRP) BCLC has a Supplemental Registered Plan fr Vice-Presidents. The SRP prvides a pensin payable at retirement n r after age 55. The pensin is calculated using the frmula frm the RPP, withut Incme Tax Act maximum pensin limits impsed n the RPP. The excess ver the RPP is payable frm the SRP. In ther wrds, the SRP prvides the pensin that the Incme Tax Act will nt allw t be paid frm the RPP. The SRP is simply a mirrr f the RPP, with tw exceptins: The Vice Presidents d nt have t cntribute t the SRP. If a Vice President terminates emplyment befre age 55, n benefit is payable frm the SRP. Supplemental Registered Pensin Plan (CEO) The CEO Supplemental Registered Pensin is similar t the SRP fr Vice Presidents with ne exceptin; the CEO receives 1.5 years f pensinable service credit fr each year f eligible service.

8 ITEM 3 - SUMMARY COMPENSATION TABLE Summary Cmpensatin Table Name and Psitin (a) Salary (b) Hldback Incentive (c) Benefits (d) Pensin (e) All Other Cmpensatin 2015/16 Ttal Previus Tw Years Ttals 2014/ /14 Jim Lightbdy, President and CEO $ 274,700 $ 30,522 $ 13,357 $ 67,100 $ 8,645 $ 394,324 $ 386,965 $ 321,715 Kevin Gass, Vice President, Lttery Gaming $ 216,629 $ 38,229 $ 11,917 $ 29,500 $ 2,480 $ 298,754 $ 301,368 $ 309,353 Lynette DuJhn, Chief Infrmatin Officer $ 204,945 $ 36,167 $ 12,454 $ 14,800 $ - $ 268,366 $ 276,495 $ 295,934 Bradley Desmarais, Vice President, Casin and Cmmunity Gaming $ 198,144 $ 22,047 $ 12,351 $ 17,100 $ 9,802 $ 259,443 $ 247,717 $ 229,551 Susan Dlinski, Vice President, Scial Respnsibility and Cmmunicatins $ 190,563 $ 33,731 $ 9,521 $ 8,400 $ - $ 242,216 $ 221,391 $ 234,464 Summary Other Cmpensatin Table Name and Psitin (a) All Other Cmpensatin Severance (f) Vacatin payut (g) Leave payut (h) Vehicle / Transprtatin Allwance (i) Perquisites / ther Allwances (j) Other (k) Jim Lightbdy, President and CEO $ 8,645 $ - $ 8,645 $ - $ - $ - $ - Kevin Gass, Vice President, Lttery Gaming $ 2,480 $ - $ 2,480 $ - $ - $ - $ - Lynette DuJhn, Chief Infrmatin Officer $ - $ - $ - $ - $ - $ - $ - Bradley Desmarais, Vice President, Casin and Cmmunity Gaming $ 9,802 $ - $ - $ - $ - $ - $ 9,802 Susan Dlinski, Vice President, Scial Respnsibility and Cmmunicatins $ - $ - $ - $ - $ - $ - $ -

9 ITEM 3.1 SUMMARY COMPENSATION TABLE DISCUSSION A Name and Principal Psitin Jim Lightbdy became President & CEO effective April, B Base Salary Payrll system limitatins restrict salary reprting t whle pay perids. The salary reprted is fr the pay perids f March 22, 2015 March 19, C Hldback Incentive Cmpensatin Earned Hldback incentive cmpensatin reprted abve is fr the achievement f fiscal 2015/16 bjectives and paid in fiscal 2016/17. The amunts currently prvided are estimated. Hldback is calculated fr Executive at 10% f ttal ptential salary, with the exceptin f Kevin Gass, Lynette DuJhn and Susan Dlinski, wh are grandfathered at 15% f ttal ptential salary. D Benefits Ttal includes emplyer cntributins fr MSP, Benefit Credits, Dental, Extended Medical, Basic and Optinal AD&D, Basic Life Insurance, and emplyers share f Statutry Benefits (WCB, EI and CPP). E Pensin The ttal includes bth Registered Pensin and Supplemental Pensin amunts. The calculated pensin amunts are established using the actuarial assumptins fr plan funding purpses. F All Other Cmpensatin Perquisite Allwance Effective January 1, 2013 all eligible CEOs and Executive received ntice f plan terminatin and were prvided with 18 mnths ntice. All perquisite allwance payments ceased n June 30, Vacatin Paid Unused vacatin time accrued in calendar year 2013, nt used by March 31, 2015.Other Acting Pay G Ttal Jim Lightbdy Ntable changes in ttal cmpensatin frm previus reprting year: Vacatin payut Pensin Retractive adjustment fr interim acting CEO psitn in Fiscal 2014/15 Lynette DuJhn Bradley Desmarais Ntable changes in ttal cmpensatin frm previus reprting year: Vacatin payut This is the first year that Mr. Desmarais has been reprted n the Executive Cmpensatin Disclsure. Base Salary PSEC-apprved increase in base salary due t additinal scpe f respnsibility in mve t Vice President, Casin and Cmmunity Gaming. Other cmpensatin Mr. Desmarais has been carrying ut the duties f Vice President, Human Resurces until June 22, 2015 and Vice President, Crprate Security and Cmpliance frm June 1, 2015 t September 19, 2015 in additin t his regular respnsibilities and has received 10% acting pay as cmpensatin fr the additinal scpe.

10 Susan Dlinski This is the first year that Ms. Dlinski has been reprted n the Executive Cmpensatin Disclsure Base Salary PSEC-apprved increase in base salary due t additinal scpe f respnsibility