CEO Assessment, Executive Compensation and Executive Diversity
Board Renewal and Appointment Appointment of Directors is ultimately made by the
Government by Order in Council, upon recommendation of CIC and the Board of Directors. The Board – through the Governance Committee – undertakes an analysis of the skills and experience necessary for the composite blend and full functioning of the Board and its Committees, and makes nomination recommendations through the Board to the Minister of Crown Investments. The Governance Committee is charged with leading the process to identify, recruit and recommend qualified candidates for appointment to the Board, and assessing the skills and competencies for the Board and its Committees to support the strategic direction and operational needs of the Corporation. The Committee performs a skills gap analysis intended to assist in achieving a balance of the skills of Board members through the recruitment/appointment of new members. The Governance Committee may meet with potential candidates to assess the overall fit with the blend of skills and experience of the current Board, time availability or any potential conflicts that could limit their full participation. The Governance Committee also makes annual recommendations to the Board regarding the appropriate structure, size and composition of the Board and its Committees, as well as the required qualifications. Board Orientation and Education The Governance Committee and the Corporation, under its Board of Directors Training Policy, has a comprehensive orientation curriculum and training sessions to ensure that new and continuing Directors develop a strong understanding of SaskEnergy’s business and current challenges, as well as the roles of the Board and Committees and the individual contributions Directors are expected to make. Board members also participate in continuing education on industry issues, financial reporting, business operations, procedural issues and ethical obligations to enhance their skills and knowledge. In 2015, the Board of Directors received training from management on the Corporation’s system integrity programs. This training included a brief history of system integrity within the pipeline industry along with detailed presentations on the areas of pipeline integrity, distribution integrity, damage prevention and storage and facility integrity. Board members interact with management and employees attending functions such as employee service awards, or touring corporate offices or business units at Board meetings. CIC also facilitates additional Director training as part of its Subsidiary Crown Directors Training Program. In 2015, CIC held two director training sessions that included one session facilitated by the Directors College. CIC also hosts meetings periodically through the year for the Chair of the Board and the Chairs of each of the Committees to discuss issues with the Chairs from other Saskatchewan Crown corporations. These meetings serve as forums to look at matters such as best practices and efficiencies, and to receive messaging from the Owner.
The Human Resources/Compensation Committee assesses the CEO’s performance semi-annually and annually against the approved objectives, which are related to the CEO Position Description and aligned with shareholder public policy objectives, the annual Business Plan and the corporate Strategic Plan. The governance standard established by the CSA for Executive compensation disclosure is to report by summary compensation table, complete with detailed formulas. However, the mandate for Executive compensation for Saskatchewan Crown corporations is established and monitored by the Owner – CIC. As such, senior management compensation aligns with the guidelines established by CIC. Given these controls on Executive compensation, both the Board and senior management seek to provide information to the Owner, and any management compensation adjustments must fit within the parameters established by the Owner. The philosophy of providing market based compensation is applicable throughout the Corporation – from senior management downwards – to set performance objectives and expectations at individual, departmental and corporate levels, and to work towards and measure the achievement of these performance objectives. A key principle in SaskEnergy’s compensation strategy is to provide fair and equitable pay representative of the individual performance of management employees with a target at the 50th percentile of the Western Canadian marketplace. The Human Resources/ Compensation Committee and the Board approve CEO and Executive compensation. Direct reports of the CEO, including all Executive members, are required by legislation to file and report the details of their compensation and benefits and any changes to the Clerk of the Saskatchewan Legislature. In addition, the Crown and Central Agencies Committee of the Legislative Assembly of Saskatchewan has, by policy, required Crown corporations, including SaskEnergy, to file an annual payee list that includes the total compensation of Executive members. The report is available on CIC’s website at www.cicorp.sk.ca in the Media Releases section. The Human Resources/Compensation Committee and the Board annually review the details of these compensation payment reports. The Corporation does not have a formal policy or targets regarding the representation of women in Executive officer positions. SaskEnergy is committed to equality of opportunity and has taken steps to increase the representation of women in management and in non-traditional roles within the Corporation. These include: proactively identifying talented individuals for leadership training programs and encouraging them to apply for more senior roles; tracking and reporting on diversity metrics; managing succession plan process; identifying top talent and implementing formal personal development plans and establishing mentorship relationships for women aspiring to management positions. There are two women (25 per cent) in Executive officer positions.
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2015-16 ANNUAL REPORT SASKENERGY
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