Broader Public Sector Executive Compensation Act, 2014 in Ontario has passed.

December 14, 2014 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: News, Canadian Charity Law, Ethics and Canadian Charities

We have discussed on this blog the Broader Public Sector Executive Compensation Act, 2014 (the "Act"). The Act has now been passed on December 9, 2014 and received Royal Assent on December 11, 2014.   It will be interesting to see the effect of this Act on non-profits and charities in Ontario.

Some have compared it to C-470.  Other than they both deal with compensation there is little in common between the two acts.

C-470 was a Federal private members bill that would have prohibited all registered charities from paying more than $250,000 in compensation to a person and would have had each charity disclose publicly the top 5 employees irrespective of how much or little they earned.  This meant that neurosurgeons could not earn more 250,000 and if you were the sole employee of a charity earning say 25,000 it would be disclosed how little you were paid.  I discuss C-470 in detail in this post.  

The Broader Public Sector Executive Compensation Act is Ontario legislation affecting only organizations that receive significant financial support from the Ontario government and it only applies to those earning compensation over $100,000.  It does not cap salaries at these non-profits but requires that the information be provided to the Ontario government.  The Ontario government may not necessarily require any adjustments to the compensation plans, although presumably if the Ontario government thought some compensation was excessive (as in the case of ORNGE) then they would have some recourse.   

Do you require legal advice with respect to Canadian or Ontario non-profits or charities?

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Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

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