The Trustees are committed to transparent disclosure regarding the compensation program and the compensation paid to members of OPTrust’s senior management team.
The Board has therefore approved disclosure of the base salary and other compensation paid to the five most senior executives under our new organizational model, starting in 2011. Under this policy, compensation disclosure will be provided for OPTrust’s President and CEO, Chief Administrative Officer, Chief Investment Officer, Senior Vice-President, Finance and Senior Vice-President, Shared Services.
While the transition to this new organizational model was begun in 2010, the process of hiring the new executives was not completed by year-end. The table below provides compensation disclosure for those senior management positions that were filled for part or all of 2010.
Incentive payments – Payments under OPTrust’s annual and long-term incentive programs are reported for the year in which they are earned, but are paid in the subsequent calendar year.
Supplementary pension benefit – All OPTrust employees are eligible to contribute to the Plan, which provides pension benefits based on years of credit and average salary up to the maximums allowed under the Income Tax Act. Employees whose salary exceeds this maximum contributed to a supplementary pension plan established by the Province of Ontario, which provides pension benefits based on the same formula as the OPSEU Pension Plan. The supplementary pension benefits disclosed reflect the present value of the increase in the future benefits accrued since the end of the previous year, less employee contributions paid during the year.
Other benefits – The amounts disclosed include vacation payouts, other taxable benefits and the employer’s share of all employee benefit premiums and contributions (excluding the supplementary pension benefit) made on behalf of employees.
The Trustees of the Plan do not receive compensation from OPTrust. They are reimbursed for incidental expenses which totalled $55,000 in 2010 (2009 - $35,000). The Trustees appointed by the Province of Ontario receive $200 per meeting that they attend and are paid directly by the Province. Trustees appointed by OPSEU are compensated by the union for any loss of regular income as a result of time spent fulfilling their duties as a member of OPTrust’s Board.
Senior Management Compensation, 2008-2010*
|($ thousands)||Year||Base earnings||Annual incentive||Long-Term Incentive||Supplementary pension benefit||Other benefits||Total|
|Chief Administrative Officer||2009||257||-||54||31||342|
|Chief Investment Officer||2009||375||155||263||67||28||887|
*In 2010, OPTrust updated its method of reporting senior management compensation to report all compensation for the year in which it is earned, rather than the year in which it is paid. Previous annual reports disclosed compensation amounts that were paid during a specific fiscal year. As such, figures for 2009 and 2008 have been restated to reflect the new methodology. Furthermore in 2010 the supplementary pension benefit was calculated using the traditional unit credit method with all relevant assumptions being the same as those shown in the financial statements.
1 Bill Foster became Chief Administrative Officer in October 2009. Prior to this appointment, Mr. Foster held the position of Vice-President, Member and Pensioner Services. Amounts reported for 2009 reflect compensation from both positions.
2 John Brennan joined OPTrust as Senior Vice-President Shared Services on November 15, 2010. Amounts shown for 2010 reflect compensation from that date.