by Morinville News Staff
The Government of Alberta is expecting an annual savings of $5 million per year once a new framework for post-secondary presidents salaries are brought in line with the national average.
Effective Apr. 15, new and renewed contracts for post-secondary presidents must adhere to new rules under Phase 3 of the Agencies, Boards and Commissions (ABC) Review.
Under existing contracts, executives will have a two-year transition period before their contract is brought in line. Bonuses for non-bargaining staff will also be eliminated.
“For far too long, the salaries of college and university presidents have been out of step with the public service, the national average, and the expectations of Albertans,” said Marlin Schmidt, Minister of Advanced Education, in a release Tuesday. “We need to ensure that taxpayer dollars are being used in the best interests of students, staff, and faculty. By lowering salaries and creating stronger controls on benefits, we’re making sure that public funding goes towards the classroom, where it belongs.”
Minister of Finance Joe Ceci said the government started by getting rid of unnecessary boards, then eliminated perks and bonuses, including golf club memberships.
“Now we are reining in salaries of the top executives of our agencies, boards and commissions, including post-secondary institutions,” Ceci said. “We will continue to clean up waste and make sure taxpayer dollars are well spent.”
The new rules cap salary levels for post-secondary president positions and place them into one of five levels based on roles and responsibilities. The rules also eliminate executive bonuses and limits executive severance pay to a maximum of 52 weeks.