Executive Performance Management Program
Baycrest has a comprehensive and rigorous Executive Performance Management Program.
Annually, the Baycrest Board of Directors conducts a detailed performance review of the President & CEO, which is then reviewed by the Management Resources & Compensation Committee of the Board. The Committee determines the compensation for the President & CEO. Each year, the President & CEO reports on executive team performance to the same Committee, which determines compensation and incentive pay for executive team members based on their performance in attaining specific goals.
The executive performance management program integrates and aligns the following key components into one program:
- Performance evaluation
Annually the performance of each executive is measured against leadership competencies and annual goals. The performance evaluation process includes a 360-measurement component that solicits feedback from superiors, Board members, subordinates and peers.
- Professional development
Based on feedback from the 360-measurement tool and other inputs, each executive must identify opportunities for growth and performance improvement.
- Performance goals
In addition to assessment through the 360, each year executives must set goals included in the following categories:
- Team goals encompassed in the Quality of Improvement Plan (QIP)
- Individual goals related to the executive’s portfolio of responsibilities
These goals are tied to initiatives where measurement of the achievement of the initiatives can be evaluated.
- Executive compensation
Executive compensation is determined and approved by the Management Resources & Compensation Committee of the Board. Compensation is determined in accordance with the Executive Compensation Strategy. Key elements of the compensation strategy are:
To enable Baycrest to recruit, develop and retain the most talented and committed leaders who can lead Baycrest in achieving its vision.
- Fully competitive – Pay must be fully competitive in the market
- Fair internally – Each individual’s pay must be fair in relation to the pay that other employees receive
- Performance based – A portion of individual compensation must be tied to individual and organizational performance
- Communicated – The communication must explain general pay principles, the specific pay system application and process used to determine individual pay levels under the system
- Transparent – The overall compensation system and individual compensation must be objective, fair and defendable
- Affordable – The total compensation must be affordable within Baycrest’s overall budget
The compensation framework has the following elements:
- External competitiveness
- Internal consistency
- Base compensation
- Incentive/At Risk Performance Compensation