Manitoulin Health Centre

MANITOULIN HEALTH CENTRE

EXECUTIVE COMPENSATION PROGRAM

1. Philosophy

Executive compensation and benefits are designed and provided in alignment with MHC’s compensation philosophy:

• Legal framework – to respect and ensure compliance with legal obligations, both contractually and in regards to relevant legislation

• Fiscal responsibility – to be diligent in the stewardship of public fundsby setting a reasonable budget for compensation within MHC’s financial resources.

• Equity – to ensure fairness in the comparison of positions within the executive team.

• Strategic plan – to ensure the execution of MHC’s mission, vision to ‘lead and collaborate within our health care environment’ and strategic directions.

• Recruitment – to recognize the rural, northern and remote aspect of MHC’s location and enable MHC to maintain a meaningful degree of competitiveness with the relevant external labour market in order to attract experienced, qualified and competent candidates.

• Retention– to ensure continuity in executive leadership over the medium and long term.

• Responsibility – to ensure accountability to delegated duties.

• Performance– to drive performance to achieve expectations and goals.

• Complexity of operations –to recognize the complexities of Manitoulin Island including the large geography and the political reality of 7 separate first nations communities and 12 municipalities, the complexities resulting from MHC’s two (equivalent) sited hospital model, and the Manitoulin Health Collaborative.

• External linkages – to influence public policy and decisions through a broader strategic leadership role in the region and beyond (e.g. LHIN- 13, OHA, MoH, other government officials) driving the value proposition to MHC from the perspective of operational and patient care impacts.

1. Selection of Comparator Organizations

The maximum salary and performance-based pay that an executive may be paid is determined by selecting at least eight comparator organizations. Compensation (salary plus performance-based pay) will target the 50th percentile of the market/comparator group for positions comparable to executive positions held at MHC.

The comparator group will be representative of the organizations with which MHC competes for executive talent. An organization may be selected if it is comparable to MHC with respect to most or all (at least 3 out of 5) of the following factors:

1. The scope of responsibilities of the organization’s executives.

Organizations with similar complexity of operations and expectations of executives with respect to external linkages.

1. The type of operations the organization engages in.

Multi-sited organizations.

1. The industries within which the organization competes for executives.

Organizations that are hospitals.

1. The size of the organization.

The comparator group will reflect a balance of larger and smaller organizations. Eg. organizations with budgets nominally in the range of 0.5 to 2 times MHC’s annual operating budget, inpatient and ER volumes, etc.

1. The location of the organization.

Organizations that are in Ontario.

Selected comparator organizations:

All comparator organizations are hospitals in Ontario.

1. Maximum salary and performance-related pay calculation:

The maximum possible salary and performance-related pay allowable is calculated at the 50th percentile of the comparator organizations:

CEO:$217,885

VP$144,066

MHC current maximums ie at the time of public posting of the program:

CEO:$192,390

VP$141,442

The current maximum possible pay for the CEO and VP positions is less than the maximum established under the Broader Public Sector Executive Compensation Framework.

Any increases contemplated to current salaries would be phased-in, in keeping with MHC’s compensation philosophy, with particularweighting on the most recent performance evaluation/competency assessment results, effectiveness at achieving the elements within the organization’s strategic plan, the years of experience with MHC, and market forces (such as recruitment and retention of executives).

Due consideration will be given to the organization’s fiscal position at the time of any proposed increases, as well as a comparison to the materiality of planned increases for non-executive manager positions.

1. Other Elements of Executive Compensation

The CEO and VPs are each required to have ready access to a vehicle on a daily basis, so as to be able to fulfill their responsibilities in a two-site facility. In consideration of this responsibility, a monthly availability allowance is provided.

Other compensation elements, including pension and benefit provisions, are consistent with those provided to non-executive managers.

1. Review of Program

The executive compensation program will be reviewed as needed. The maximum salary and performance-related pay amounts shall be re-calculated in the event of a significant organizational restructuring, or at any other time if recalculation is deemed to be warranted by the Board.