Item - 2012.EX21.19
Tracking Status
- City Council adopted this item on July 11, 2012 with amendments.
- This item was considered by the Executive Committee on June 12, 2012 and adopted without amendment. It will be considered by City Council on July 11, 2012.
- See also By-law 953-2012
EX21.19 - Executive Compensation 2011 for City Agencies and Corporations
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on July 11, 12 and 13, 2012, adopted the following:
1. City Council require that the Shareholder Directions for all wholly-owned City corporations be amended to require public disclosure to the extent permitted by law of individual executive compensation as part of the annual reporting to the Shareholder and where required obtain consent from the executives for such disclosure, and authorize the City Manager to execute the revised Shareholder Directions in a form approved by the City Solicitor.
2. City Council require all City agencies and corporations, other than the Police Services Board and the Public Library Board to:
a. report their individual executive compensation and salary ranges to the City Manager in a form and at a time satisfactory to the City Manager as permitted by law; and
b. take action to ensure that future employment contracts for executives contain a provision providing employee consent to the disclosure of their individual compensation to the City Manager and in a confidential report to City Council in a form and at a time satisfactory to the City Manager.
3. City Council request the Toronto Police Services Board and the Toronto Public Library Board to:
a. report their individual executive compensation and salary ranges to the City Manager in a form and at a time satisfactory to the City Manager as permitted by law; and
b. take action to ensure that future employment contracts for executives contain a provision providing employee consent to the disclosure of their individual compensation to the City Manager and in a confidential report to City Council in a form and at a time satisfactory to the City Manager.
4. City Council direct the City Manager to request the City agencies and corporations, when reviewing any compensation programs that are applicable to their executive employees (i.e. chief executive officer, chief administrative officer, other executive officers or equivalents also known as "C Level" Executives) to consider and base their review on performance measurements that incorporate clear, well-documented individual and organizational objectives and that any incentive variable pay remuneration (one-time lump sums) should not exceed 25% of an Executive employee's base salary.
5. City Council request the City Manager to report to City Council on executive compensation of City agencies and corporations once per term of Council commencing in 2015, such report to include:
a. individual salary ranges and aggregate compensation for executives by agency type in a public report; and
b. individual executive compensation, including base salary, bonuses, expenses and the value of benefits, in a confidential attachment.
6. City Council enact by-laws for City Boards to require the disclosure of individual executive compensation in a confidential report to City Council through the City Manager as permitted by law, and authorize the City Solicitor to submit the appropriate bills.
7. City Council authorize the City Manager to include a provision in Relationship Frameworks for City Boards, and to make amendments to existing Relationship Frameworks for City Boards, to require the disclosure of individual executive compensation in a confidential report to City Council through the City Manager as permitted by law.
8. City Council authorize the City Manager to make the necessary changes to the Relationship Framework Agreement for the Toronto Atmospheric Fund to require the disclosure of individual executive compensation in a confidential report to City Council through the City Manager as permitted by law.
9. City Council direct that the contents of Confidential Attachments 2, 3 and 4 to the report (May 29, 2012) from the City Manager and the City Solicitor be kept confidential in their entirety after the consideration of the report by Council for reasons of personal information about identified individuals and solicitor-client privilege.
Confidential Attachments 2, 3 and 4 to the report (May 29, 2012) from the City Manager and the City Solicitor remain confidential in their entirety in accordance with the provisions of the City of Toronto Act, 2006 as they contain personal information about identifiable individuals and are subject to solicitor-client privilege.
City Council Decision Advice and Other Information
City Council recessed its public session and met as Committee of the Whole in closed session on July 12, 2012, and considered confidential information on this Item as relates to personal matters about identifiable individuals, including municipal or local board employees and receiving of advice that is subject to solicitor-client privilege.
Confidential Attachment - Personal matters about identifiable individuals, including municipal or local board employees and receiving of advice that is subject to solicitor-client privilege
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-48076.pdf
Confidential Attachments - Attachment 1- Participating City Agencies and Corporations, Attachment 2 - City Manager Report on Individual 2011 Executive Compensation, Attachment 3 - Executive Compensation - Top 25 Earners, Attachment 4 - City Solicitor Report on Individual 2011 Executive Compensation
Motions (City Council)
July 12, 2012 - 7:56 p.m. - Deputy Speaker Parker advised that City Council had completed its closed session consideration of EX21.19 - Executive Compensation 2011 for City Agencies and Corporations. City Council debated this item in closed session, but did not consider any motions.
That City Council direct the City Manager to request the City agencies and corporations, when reviewing any compensation programs that are applicable to their Executive employees (i.e. chief executive officer, chief administrative officer, other executive officers or equivalents also known as "C Level" Executives), to consider and base their review on performance measurements that incorporate clear, well-documented individual and organizational objectives and that any incentive variable pay remuneration (one-time lump sums) should not exceed 25% of an Executive employee's base salary.
Vote (Amend Item (Additional)) Jul-12-2012 8:02 PM
| Result: Carried | Majority Required - EX21.19 - Minnan-Wong - motion 1 |
|---|---|
| Total members that voted Yes: 33 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Doug Ford, Rob Ford, Mary Fragedakis, Doug Holyday, Mike Layton, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, John Parker, Gord Perks, Jaye Robinson, Karen Stintz, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 3 | Members that voted No are Raymond Cho, Janet Davis, Anthony Perruzza |
| Total members that were Absent: 9 | Members that were absent are John Filion, Mark Grimes, Norman Kelly, Mary-Margaret McMahon, Joe Mihevc, Ron Moeser, James Pasternak, David Shiner, Michael Thompson |
Vote (Adopt Item as Amended) Jul-12-2012 8:03 PM
| Result: Carried | Majority Required - EX21.19 - Adopt item as amended |
|---|---|
| Total members that voted Yes: 32 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Doug Holyday, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, John Parker, Gord Perks, Jaye Robinson, Karen Stintz, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 1 | Members that voted No are Anthony Perruzza |
| Total members that were Absent: 12 | Members that were absent are John Filion, Doug Ford, Rob Ford, Mark Grimes, Norman Kelly, Giorgio Mammoliti, Mary-Margaret McMahon, Joe Mihevc, Ron Moeser, James Pasternak, David Shiner, Michael Thompson |
EX21.19 - Executive Compensation 2011 for City Agencies and Corporations
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Confidential Attachment - Personal matters about an identifiable individual, including municipal or local board employees and receiving of advice that is subject to solicitor-client privilege
Committee Recommendations
The Executive Committee recommends that:
1. City Council require that the Shareholder Directions for all wholly-owned City corporations be amended to require public disclosure to the extent permitted by law of individual executive compensation as part of the annual reporting to the Shareholder and where required obtain consent from the executives for such disclosure, and authorize the City Manager to execute the revised Shareholder Directions in a form approved by the City Solicitor.
2. City Council require all City agencies and corporations, other than the Police Services Board and the Public Library Board to:
a. report their individual executive compensation and salary ranges to the City Manager in a form and at a time satisfactory to the City Manager as permitted by law; and
b. take action to ensure that future employment contracts for executives contain a provision providing employee consent to the disclosure of their individual compensation to the City Manager and in a confidential report to City Council in a form and at a time satisfactory to the City Manager.
3. City Council request the Police Services Board and the Public Library Board to:
a. report their individual executive compensation and salary ranges to the City Manager in a form and at a time satisfactory to the City Manager as permitted by law; and
b. take action to ensure that future employment contracts for executives contain a provision providing employee consent to the disclosure of their individual compensation to the City Manager and in a confidential report to City Council in a form and at a time satisfactory to the City Manager.
4. City Council request the City Manager to report to City Council on executive compensation of City agencies and corporations once per term of Council commencing in 2015, such report to include:
a. individual salary ranges and aggregate compensation for executives by agency type in a public report; and
b. individual executive compensation, including base salary, bonuses, expenses and the value of benefits, in a confidential attachment.
5. City Council enact by-laws for City Boards to require the disclosure of individual executive compensation in a confidential report to City Council through the City Manager as permitted by law, and authorize the City Solicitor to submit the appropriate bills.
6. City Council authorize the City Manager to include a provision in Relationship Frameworks for City Boards, and to make amendments to existing Relationship Frameworks for City Boards, to require the disclosure of individual executive compensation in a confidential report to City Council through the City Manager as permitted by law.
7. City Council authorize the City Manager to make the necessary changes to the Relationship Framework Agreement for the Toronto Atmospheric Fund to require the disclosure of individual executive compensation in a confidential report to City Council through the City Manager as permitted by law.
8. City Council direct that the contents of Confidential Attachments 2, 3 and 4 to the report (May 29, 2012) from the City Manager and City Solicitor be kept confidential in their entirety after the consideration of the report by Council for reasons of personal information about identified individuals and solicitor-client privilege.
Origin
Summary
City Council requested information on the executive compensation for City agencies and corporations. In total, 35 agencies and corporations were canvassed and executive compensation data for over 120 executives was submitted to the City Manager.
This report presents a summary analysis of the data collected, recommends Council enact by-laws for City Boards, amend Relationship Frameworks for agencies and amend Shareholders Directions for wholly-owned City Corporations to require the disclosure of individual executive compensation in a confidential report to City Council through the City Manager, and makes recommendations for the future collection and reporting on executive compensation.
The data in this report has been aggregated to protect the privacy of individual executives whose organizations participated by submitting their compensation data. The protection of individual privacy is required by the Municipal Freedom of Information and Protection of Privacy Act.
The Confidential Attachments to this report are required to protect personal information of identifiable individuals and for purposes of solicitor-client privilege.
A further report in response to previous Council requests will follow once research has been completed regarding:
a. executive compensation schemes, and private sector comparators where available relating to agency and corporation executive compensation; and
b. human resources policies and practices of boards and alignment with City objectives.
The City Solicitor provided the solicitor-client advice contained in Attachment 4 and has been consulted in the preparation of the report.
Background Information
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-48076.pdf
Confidential Attachments - Attachment 1- Participating City Agencies and Corporations, Attachment 2 - City Manager Report on Individual 2011 Executive Compensation, Attachment 3 - Executive Compensation - Top 25 Earners, Attachment 4 - City Solicitor Report on Individual 2011 Executive Compensation