Performance Management Program (PMP) for Executives

The Performance Management Program for Executives encourages excellence in performance by setting clear objectives, evaluating achievement of results, recognizing and rewarding performance, and providing a framework for consistency in performance management.

To reflect the nature and scope of executives’ work, their compensation is different from that of other employees in the core public administration. In addition to base salary, executives may earn performance-based compensation that reflects their level of achievement of objectives and their demonstration of key leadership competencies. Performance-based compensation may be in the form of at-risk pay, in-range salary movement (increments within a salary range) and revision of a salary range. Executives who have achieved exceptional results against all commitments and who have truly demonstrated the Key Leadership Competencies may also receive a bonus.

Executives at the EX-01 to EX-03 levels may receive at-risk pay of up to 12 per cent of their base salary and a bonus of up to 3 per cent. Executives at the EX-04 and EX-05 levels may receive at-risk pay of up to 20 per cent of their base salary and a bonus of up to 6 per cent.

The Treasury Board of Canada Secretariat communicates annual limits on the amount that each organization in the core public administration may spend on performance pay. Annual limits are calculated as a percentage of the executive payroll on March 31 each year.

Further information is available in the Directive on Performance and Talent Management for Executives.