The CEO establishes compensation for the other executives, in accordance with the executive compensation philosophy described above, under the oversight of the HRCC of the Board of Directors. On an annual basis, the CEO advises the HRCC of the other executives’ compensation adjustments, including the rationale based on performance and market data.
The compensation, benefits and perquisite packages received by executives are consistent in form with that of the CEO, although the specific amounts differ. Salaries, STI targets and LTI targets are set based on the median of the market for total compensation (base, incentives and benefits) within the comparator group. STI or LTI payments are based on achievement of pre-established performance targets. Any STI or LTI payments are contingent on Board approval.
In addition to the compensation philosophy for executive roles, BlueShore has an employee compensation philosophy. Job rate (base salary for a fully competent performer) and Performance Rewards Program target incentives are set based on the median of the market. Our comparator group includes financial services for roles that are specific to that industry and the general market in BC for other roles that are non-industry specific.
A key tenet is that BlueShore believes in providing wages that are not only market-competitive but also ensure a reasonable standard of living for all employees. Two different compensation surveys are used to evaluate the competitiveness of salary ranges against the BC market. As with executives, we target the median of the market for base salary ranges, with differences by individual based on performance against competencies set by role.
All employees participate in the corporate Performance Rewards Program, except those with individually- based or commission-driven incentive plans. Performance Rewards Program payouts are annual, and vary based on performance against predefined corporate and individual goals designed to move the organization forward through results, innovation, risk management, and/or operational efficiencies. Individual goals include both independent and collaborative goals. Target payout percentages are set to the median of the market. Corporate targets are the same for all employees including executives, and are set and approved by the Board.
Employees also receive a competitive benefits package that includes health insurance, dental insurance, employee and family assistance, life insurance, accidental death and dismemberment insurance, tuition and educational assistance. Short-term and long-term disability insurance are employee funded. BlueShore provides employees the option of one of two retirement plans. The first, a Defined Benefit (DB) pension plan through the BC Credit Union Employees’ Defined Benefit Pension Plan (a multi-employer plan), includes contributions by both the employee and the organization. The notes to the Annual Financial Statements describe the health and funded level of the DB pension plan. The second is a Defined Contribution (DC) plan in which the organization contributes 4% of the employee’s earnings to the plan and will match employee contributions on a 50% matching basis up to an additional 2%.