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Legislation would link CEO pay cheques to performance: "We’ve got to put the service back in public service.” - Premier McGuinty.
Toronto (8 April 2010) - The Ontario government is planning legislation this spring to base compensation rates for hospital CEOs on performance standards at their institutions.
The CEOs – 14 of whom make more than $500,000 annually – would be judged in future by factors such as infection rates, emergency department delays, wait times for hip and knee replacements and other performance measurements. The views of individual patients would also be taken into account.
Premier Dalton McGuinty says the concept will begin at hospitals but could be extended to senior executives on staff at the province's approximately 600 other boards, agencies and commissions.
"At some point in time we will be talking about senior executive salaries, something that goes beyond hospitals,” he said. “We’ve got to put the service back in public service.”
Meanwhile, McGuinty said all senior executives should voluntarily observe the pay freeze being imposed on public employees (including MPPs) to help deal with Ontario's massive $19.7-billion deficit.
The publication last week of a list of all provincial employees earning $100,000 or more revealed a number of senior executive pay packages nearing the $1-million range.
For example, Matthew Teitelbaum of the Art Gallery of Ontario (AGO) collected $945,498 (including bonuses) while Hydro One CEO Laura Formusa was paid $975,176.
Tom Closson, president of the Ontario Hospital Association (OHA), welcomed the proposed legislation. “It’s appropriate for the government to say, ‘Here is where we would like performance improved,'" he said.
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