Nbso1 10

APPENDIX B
Hay Group
Compensation Review
New Brunswick System Operator (Executive Team)
This document was provided to New Brunswick System Operator in the English
language only.
New Brunswick System Operator
Compensation Review
September 2011
Prepared by:
Suzanne Cunningham
Ryla Sandor
Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Background and Mandate . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .4
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Compensation Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Compensation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Observations and Key Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
2011 Hay Group. All Rights Reserved
01
Executive Summary
Executive Summary
Compensation for NBSOs executive team is on average around the median of the three
comparator markets and thus we would deem compensation overall to be reasonable
As shown below, compensation positioning varies greatly between the different comparator
markets
Base Salary
Utilities
Organizations
Actual Total Cash Compensation
Broader Public Sector Broader Public Sector

Organizations Organizations Atlantic Canada
Canada
Utilities
Organizations
Broader Public Sector Broader Public Sector

Organizations Organizations Atlantic Canada
Canada
President and CEO
P12
>P75
P57
<P10
>P75
P45
Executive Vice-President
Planning and Development
P20
>P90
P59
<P10
P90
P47
Vice-President Operations
P22
P87
P55
P13
P86
P44
Chief Financial Officer
<P10
P81
P38
<P10
P80
P33
Legal Counsel
P31
P89
P64
P17
P86
P49
Manager Human Resources
P20
P84
P47
P14
P79
P41
P75 etc indicates the position within a given market for example P75 indicates that 75 respondents are below and 25 are above while
P50 is the median position of the market
Compensation positioning is most competitive when compared to the Canada Broader

Public Sector market
02
Background and Mandate
Background & Mandate
Hay Group Limited (Hay Group) has been retained by New Brunswick System
Operator (NBSO) to review and assess the existing cash compensation positioning for
its executives. This review includes:
Job evaluation for NBSOs executive team
Competitive benchmarking of these positions and their compensation against an
appropriate comparator group(s)
This report sets out our methodology and observations
Background & Mandate (contd.)
The compensation review will evaluate the following compensation elements for
NBSOs executive:
Policy Base Salary (the job rate policy)
Actual Base Salary; (what is actually being paid out against the policy rate)
Target and Actual Annual Bonus (% of Base Salary);
Target Total Cash Compensation (Base Salary plus Target Annual Bonus); (the total cash
design)
Actual Total Cash Compensation (Base Salary plus Actual Annual Bonus);
03
Methodology
Methodology
As agreed by NBSO, Hay Group has benchmarked the selected executives against 3
comparator groups. (Please see Appendix A for a list of organizations within these
comparator groups)
These markets were selected based on type or similar industry (in the case of Utilities),
stakeholder interest (in the case of Canadian Broad Public), and regional influence (in
the case of Atlantic Broader Public). When selecting a market for comparison,
organizations need to consider type of industry, where the organization recruits from,
where it loses its talent to, and any regional influences
1. Canadian Utilities market Organizations operating within the Utilities sector from across
Canada
2. Atlantic Broader Public Sector market Public sector and quasi-public sector
organizations operating within Atlantic Canada
3. Canadian Broader Public Sector market Public sector and quasi-public sector
organizations across Canada
By using these comparator groups, Hay Group believes NBSO will be provided with an
appropriate basis of comparison for its executives
Methodology
All market data are as of May 2011
NBSOs compensation represents actual base salaries provided to its executives. It

does not reflect the recommended salary structure put forth during the 2009
compensation review
Methodology (contd.)
NBSOs executives compensation was evaluated against the market data by Job Size
The job evaluation process involves a comparison being made between different
aspects of total job content, defined as Know-How, Problem Solving and Accountability.
The sum of these measures, expressed in job evaluation points, represents the value
of the whole job
Job evaluation allows Hay Group to take into account aspects of a position that cannot be
covered under a simple job match such as the size of the company and number of direct
reports
For example, NBSOs CEO will not be matched to a CEO of a large utilities organization in
Ontario, but instead to a role of the same size (same number of Hay Points) in each
organization that is. This may be a senior director or junior executive in a larger utilities
organization
10
Methodology (contd.)
A job evaluation was completed on NBSOs selected roles as displayed below. Each
position was evaluated by Hay Group. The evaluation for each role was also validated
internally by a second Hay Group consultant. Please see Appendix B for a more
detailed explanation of the Hay Guide Chart-Profile Method of Job EvaluationSM
Incumbent
Proposed
Evaluation
S. Gignac
1868
J. Finn
1232
R. Stairs
1142
M. Jardine
1142
Legal Counsel
K. Roherty
1096
N. Seely
677
Position
President and CEO
Executive Vice-President Planning
and Development
These evaluations represent a snapshot of how we understand the organization

today. We understand that NBSO has been through organizational changes since
the last compensation review was conducted
11
04
Compensation Philosophy
12
Compensation Philosophy
NBSOs compensation philosophy is to target compensation close to the average of

the target market
We will base our analysis and recommendations on our understanding of NBSOs

compensation philosophy
13
Compensation Philosophy (contd.)
Depending on where NBSO decides to target compensation positioning, it will send a

message to the market:
25th percentile positioning. Organizations who choose to position themselves below
the market median are usually organizations in industries/locations where there is
excess supply of talent or that are satisfied with the talent they can attract at that
level of compensation. Positioning compensation at the 25th percentile of
comparators tends to send a demotivating message to employees and may make
retention and attraction more difficult
Median positioning (50th percentile). The majority of organizations target
compensation at the median of comparators. Median compensation positioning
ensures that you are competitive in the market
75th percentile positioning. when an organization positions compensation near the
75th percentile of the market, it is typically trying to attract/retain key talent, trying to
encourage top quartile performance or both
14
05
Compensation Analysis
16
15
Compensation Analysis
The following section summarizes the results in Canadian dollars from the compensation
review of NBSOs executives
Data has been presented in tables and charts
All compensation data in the tables is presented by average and quartile to reflect the 25th,
50th, and 75th percentiles of the market data, as well as, the 10th and 90th percentiles,
where available
16
Compensation Analysis (contd.)

President & CEO
Position:
President and CEO
Total Points: 1868

Target Compensation
Cdn$
Policy Base
Salary
Actual Base
Salary
President and CEO
234,100
Utilities Market
P90
P75
P50
P25
P10
Average
# of Organizations
342,000
298,000
277,000
254,000
247,000
285,000
17
362,000
306,000
293,000
261,000
229,000
292,000
17
Actual Compensation
Total
Cash
Bonus % 1
Total
Cash
234,100
234,100
P75
P50
68%
49%
34%
28%
14%
40%
16
592,000
433,000
399,000
341,000
268,000
412,000
17
63%
56%
46%
33%
12%
42%
16
584,000
461,000
427,000
344,000
266,000
421,000
17
P25
P10
-41%
< P10
-45%
< P10
*
*
*
*
*
*
*
*
196,000
175,000
164,000
*
180,000
9
*
*
*
*
*
*
*
*
196,000
175,000
164,000
*
180,000
9
35%
>P75
34%
>P75
34%
>P75
296,000
258,000
225,000
183,000
162,000
229,000
96
49%
36%
21%
12%
10%
27%
52
409,000
321,000
251,000
194,000
171,000
273,000
96
54%
37%
17%
11%
0%
27%
52
428,000
319,000
245,000
189,000
165,000
274,000
96
4%
P57
-7%
P43
-4%
P45
Bonus %
P90
Variance from Median

*
Market Position
*
Broader Public Sector Organizations - Canada
P90
298,000
P75
263,000
P50
228,000
P25
186,000
P10
164,000
Average
233,000
# of Organizations
96
Market Position
*
*
NBSO
700,000
600,000
500,000
400,000
$Cdn

*
-20%
Market Position
*
P12
Broader Public Sector Organizations - Atlantic Canada
P90
*
*
P75
204,000
196,000
P50
179,000
173,000
P25
167,000
164,000
P10
*
*
Average
184,000
178,000
# of Organizations
9
9
300,000
200,000
100,000
0
Utilities Organizations
Broader Public Sector

Organizations - Atlantic
Canada

Organizations - Canada
* Ins uffi ci ent da ta

(1) Onl y i ncl udes orga ni za ti ons wi th a pl a n a t thi s l evel .
17

EVP, Planning and Development
Executive Vice-President Planning and Development
Target Compensation
Cdn$
Utilities Market
P90
P75
P50
P25
P10
Average
# of Organizations
Policy Base
Salary
Actual Base
Salary
170,000
223,000
208,000
190,000
177,000
154,000
190,000
23
232,000
210,000
193,000
175,000
159,000
195,000
23
Actual Compensation
Total
Cash
Bonus % 1
Total
Cash
170,000
170,000
40%
33%
27%
22%
14%
28%
21
310,000
270,000
245,000
208,000
178,000
248,000
23
43%
38%
31%
17%
10%
28%
21
315,000
280,000
248,000
209,000
172,000
248,000
23
-31%
< P10
-31%
< P10
*
*
*
*
*
*
*
170,000
140,000
137,000
122,000
110,000
140,000
24
*
*
*
*
*
*
*
170,000
140,000
137,000
122,000
110,000
140,000
24
25%
> P90
24%
P90
24%
P90
208,000
182,000
163,000
138,000
127,000
165,000
142
36%
30%
21%
11%
9%
23%
65
261,000
214,000
176,000
143,000
130,000
186,000
142
41%
29%
18%
9%
0%
21%
65
265,000
210,000
174,000
141,000
129,000
185,000
142
4%
P59
-3%
P45
-2%
P47
Bonus %
P90

*
-12%
Market Position
*
P20
P90
173,000
166,000
P75
145,000
139,000
P50
138,000
136,000
P25
126,000
122,000
P10
104,000
110,000
Average
138,000
137,000
# of Organizations
24
24
*
Market Position
*
P90
202,000
P75
183,000
P50
164,000
P25
138,000
P10
129,000
Average
165,000
# of Organizations
142
Market Position
Total Points: 1232
*
*
P75
P50
P25
P10
NBSO

350,000
300,000
250,000
200,000
$Cdn
Position:
150,000
100,000
50,000
0

Canada


18

Vice President Operations
Position:
Total Points: 1142

Target Compensation
Cdn$
Policy Base
Salary
Actual Base
Salary
155,800
203,000
197,000
176,000
163,000
137,000
175,000
24
217,000
198,000
180,000
159,000
144,000
181,000
24
Actual Compensation
Total
Cash
Bonus % 1
Total
Cash
155,800
155,800
39%
30%
25%
20%
15%
26%
21
285,000
250,000
223,000
184,000
157,000
225,000
24
39%
36%
28%
17%
9%
26%
21
282,000
255,000
227,000
184,000
149,000
224,000
24
300,000
-30%
< P10
-31%
P13
250,000
*
*
*
*
*
*
*
166,000
131,000
128,000
118,000
110,000
134,000
26
*
*
*
*
*
*
*
166,000
131,000
128,000
118,000
110,000
135,000
26
23%
P87
22%
P86
22%
P86
194,000
168,000
153,000
131,000
122,000
155,000
147
34%
29%
20%
10%
9%
22%
65
240,000
192,000
165,000
134,000
123,000
172,000
147
39%
28%
17%
9%
0%
20%
65
243,000
192,000
163,000
133,000
123,000
171,000
147
2%
P55
-6%
P43
-4%
P44
Bonus %
P90
Utilities Market
P90
P75
P50
P25
P10
Average
# of Organizations

*
-13%
Market Position
*
P22
P90
164,000
163,000
P75
136,000
129,000
P50
128,000
127,000
P25
123,000
118,000
P10
101,000
110,000
Average
132,000
132,000
# of Organizations
26
26
*
Market Position
*
P90
187,000
P75
169,000
P50
155,000
P25
130,000
P10
123,000
Average
154,000
# of Organizations
147
Market Position
P75
P50
P25
P10
NBSO
200,000
$Cdn
150,000
100,000
50,000
0
*
*

Canada


19

Position:
Total Points: 1142

Target Compensation
Cdn$
Policy Base
Salary
Actual Base
Salary
142,000
203,000
197,000
176,000
163,000
137,000
175,000
24
217,000
198,000
180,000
159,000
144,000
181,000
24
Actual Compensation
Total
Cash
Bonus % 1
Total
Cash
142,000
142,000
39%
30%
25%
20%
15%
26%
21
285,000
250,000
223,000
184,000
157,000
225,000
24
39%
36%
28%
17%
9%
26%
21
282,000
255,000
227,000
184,000
149,000
224,000
24
-36%
< P10
-37%
< P10
*
*
*
*
*
*
*
166,000
131,000
128,000
118,000
110,000
134,000
26
*
*
*
*
*
*
*
166,000
131,000
128,000
118,000
110,000
135,000
26
12%
P81
11%
P80
11%
P80
194,000
168,000
153,000
131,000
122,000
155,000
147
34%
29%
20%
10%
9%
22%
65
240,000
192,000
165,000
134,000
123,000
172,000
147
39%
28%
17%
9%
0%
20%
65
243,000
192,000
163,000
133,000
123,000
171,000
147
-7%
P38
-14%
P31
-13%
P33
Bonus %
P90
Utilities Market
P90
P75
P50
P25
P10
Average
# of Organizations

*
-21%
Market Position
*
< P10
P90
164,000
163,000
P75
136,000
129,000
P50
128,000
127,000
P25
123,000
118,000
P10
101,000
110,000
Average
132,000
132,000
# of Organizations
26
26
*
Market Position
*
P90
187,000
P75
169,000
P50
155,000
P25
130,000
P10
123,000
Average
154,000
# of Organizations
147
Market Position
*
*
P75
P50
P25
P10
NBSO
300,000
250,000
200,000
$Cdn
150,000
100,000
50,000
0

Canada


20

Legal Counsel
Position:
Legal Counsel
Total Points: 1096

Target Compensation
Cdn$
Policy Base
Salary
Actual Base
Salary
155,800
196,000
187,000
168,000
155,000
133,000
168,000
25
207,000
188,000
171,000
151,000
139,000
172,000
25
Actual Compensation
Total
Cash
Bonus % 1
Total
Cash
155,800
155,800
37%
28%
23%
18%
13%
24%
21
269,000
234,000
208,000
173,000
150,000
210,000
25
37%
33%
25%
17%
8%
24%
21
264,000
240,000
211,000
173,000
142,000
210,000
25
300,000
-25%
P14
-26%
P17
250,000
*
*
*
*
*
*
*
163,000
133,000
125,000
116,000
108,000
132,000
27
*
*
*
*
*
*
*
163,000
133,000
125,000
116,000
108,000
132,000
27
26%
P89
25%
P86
25%
P86
187,000
163,000
147,000
127,000
118,000
150,000
148
32%
27%
18%
10%
8%
20%
65
228,000
184,000
158,000
130,000
119,000
165,000
148
36%
26%
16%
8%
0%
19%
65
230,000
184,000
157,000
129,000
119,000
164,000
148
6%
P64
-1%
P48
-1%
P49
Bonus %
P90
Utilities Market
P90
P75
P50
P25
P10
Average
# of Organizations

*
-9%
Market Position
*
P31
P90
159,000
158,000
P75
135,000
130,000
P50
125,000
124,000
P25
119,000
116,000
P10
102,000
108,000
Average
129,000
129,000
# of Organizations
27
27
*
Market Position
*
P90
181,000
P75
163,000
P50
149,000
P25
127,000
P10
119,000
Average
149,000
# of Organizations
148
Market Position
*
*
P75
P50
P25
P10
NBSO
200,000
$Cdn
Legal Counsel
150,000
100,000
50,000
0

Canada


21

Position:
Total Points: 677

Target Compensation
Cdn$
Policy Base
Salary
Actual Base
Salary
101,800
142,000
130,000
115,000
102,000
98,000
117,000
29
143,000
130,000
116,000
105,000
95,000
118,000
29
Actual Compensation
Total
Cash
Bonus % 1
Total
Cash
101,800
101,800
15%
15%
15%
10%
5%
13%
20
160,000
142,000
127,000
110,000
100,000
129,000
29
19%
15%
12%
7%
3%
12%
20
156,000
140,000
129,000
110,000
99,000
128,000
29
-21%
P14
160,000
-20%
P13
*
*
*
*
*
*
*
110,000
98,000
92,000
87,000
82,000
94,000
29
*
*
*
*
*
*
*
112,000
98,000
92,000
87,000
82,000
94,000
29
120,000
11%
P84
11%
P80
11%
P79
127,000
115,000
103,000
92,000
86,000
105,000
161
20%
15%
10%
7%
4%
12%
59
140,000
121,000
108,000
95,000
87,000
110,000
161
19%
15%
8%
3%
0%
10%
59
138,000
120,000
107,000
93,000
87,000
110,000
161
-1%
P47
-6%
P38
-5%
P41
Bonus %
P90
Utilities Market
P90
P75
P50
P25
P10
Average
# of Organizations

*
-12%
Market Position
*
P20
P90
107,000
105,000
P75
98,000
97,000
P50
92,000
92,000
P25
87,000
87,000
P10
81,000
81,000
Average
93,000
92,000
# of Organizations
29
29
*
Market Position
*
P90
126,000
P75
115,000
P50
104,000
P25
94,000
P10
88,000
Average
106,000
# of Organizations
161
Market Position
P75
P50
P25
P10
NBSO

180,000
140,000
100,000
$Cdn
80,000
60,000
40,000
20,000
0
*
*

Canada


22
06
Observations and Key
Findings
23
23
Observations and Key Findings
Salary
Base salary positioning was fairly constant among NBSOs executive team
Compared to the Utilities market, NBSOs base salaries were consistently below the
median of the market, and in many cases below the 25th percentile of comparators as
well
When looking at the Atlantic Canada Broader Public Sector (BPS) market, base
salary positioning rises substantially to above the 75th percentile of comparators
The Canadian BPS market sits in between the other 2 comparator groups
o
Base salary positioning for NBSOs executives is near the median of the market, fluctuating
between the 38th and the 64th percentiles of comparators
24
Observations and Key Findings (contd.)
Bonus
Many organizations in NBSOs comparator markets, with the exception of the Atlantic
Canada BPS, provide their executives with a bonus opportunity
At the median of comparators, target bonuses at NBSOs President and CEO level
ranged from 21% to 34% of base salary (actual bonuses paid out at 17% and 46% of
base salary at the same level)
Target bonuses at the other executives levels, ranged from 10% to 27% of base
salary at the median of the market (actual bonuses were between 8% and 31%)
In the Atlantic Canada BPS market, very few organizations provide their executives
with a bonus opportunity
o
This comment may be skewed by the fact that the sample size of this market is fairly small
25
Total Cash Compensation
Target and actual total cash compensation positioning for NBSO drops lower than
base salary positioning since NBSO does not provide its executives with a bonus
opportunity
Compared to the Utilities market, NBSOs total cash compensation were consistently
below the 25th percentile of the market, and in many cases below the 10th percentile
of comparators as well
When looking at the Atlantic Canada Broader Public Sector (BPS) market, total
cash compensation positioning remains consistently above the 75th percentile of
comparators
The Canadian BPS market sits in between the other 2 comparator groups
o
Base salary positioning for NBSOs executives is below the median of the market, fluctuating
between the 31st and the 49th percentiles of comparators
26
Summary
NBSO executive compensation varies substantially depending on the comparator

market
It will be important for NBSO to decide which market (or markets) it feels is the
strongest comparator group for its executives
As mentioned, we typically look at the type of business/industry the organization falls

within, where it may look to recruit new executives and the types of organizations it
typically loses its current executives to
Based on the fact that NBSO recruits its executives from both private and public
sector, with an emphasis on the Utilities market, we would recommend using the
Utilities market and the Canadian BPS market in combination as your primary
comparator groups
o
Since the Atlantic Canada BPS is a relatively limited market, we would recommend using this
as a reality check instead of as your primary comparator group
We also believe that other organizations based in Atlantic Canada are trending towards using
a broader Canadian market to benchmark their executives
27
Recommendation
We would recommend NBSO position base salaries for its executives between the
median of the Canadian BPS and the Utilities markets
NBSO may wish to evaluate the positioning of base salaries for its executives in
relation to total cash compensation of comparators as well. If NBSO decides to do
this, we recommend targeting the median of total cash compensation for the
Canadian BPS
o
This will compensate for the fact that many of its comparators provide their executives with a
bonus opportunity
This also takes into account that NBSO will likely look nationwide when recruiting for its
executive roles
This will be important to take into account when trying to attract and retain key talent
NBSO should also take into account compression issues below its executive team.
We understand that a substantial portion of NBSOs workforce is comprised of
professional engineers under a bargaining agreement. NBSOs compensation
philosophy will need to take this into consideration
28
Recommendation
The chart below lays out the median compensation levels in each of the
recommended markets for NBSOs executives
Base Salary - Median
Actual Total Cash Compensation - Median
NBSO Actual

Organizations Canada
Utilities
Organizations

Organizations Canada
Utilities
Organizations
President and CEO
$234,100
$225,000
$293,000
$245,000
$427,000
$170,000
$163,000
$193,000
$174,000
$248,000
$155,800
$153,000
$180,000
$163,000
$227,000
$142,000
$153,000
$180,000
$163,000
$227,000
Legal Counsel
$155,800
$147,000
$171,000
$157,000
$211,000
$101,800
$103,000
$116,000
$107,000
$129,000
29
07
Next Steps
30
Next Steps
Review analysis and findings from the compensation review
Finalize compensation philosophy and target compensation positioning for NBSOs

executives
Establish the compensation philosophy and target compensation positioning for NBSOs
remaining management and non-union employees
Evaluate the remaining management and non-union positions using the Hay Guide
Chart-Profile Method of Job EvaluationSM (we understand that NBSO has a qualified
internal resources who can undertake this project Hay Group would audit the results
for consistency and quality assurance)
Implement results
31
08
Appendices
32
Appendix A Utilities Organizations (N=31)
Bluewater Power Distribution Corporation

Brantford Energy Group of Companies
British Columbia Hydro and Power Authority
Bruce Power
Direct Energy Marketing Ltd.
Enersource Hydro Mississauga
Fortis Inc.
Fortis Ontario Inc.
FortisAlberta Inc.
FortisBC Energy Inc.
FortisBC Inc.
Guelph Hydro Electric Systems Inc.
Halifax Regional Water Commission
Horizon Utilities Corporation
Hydro One Brampton
Hydro One Inc.
Hydro Ottawa Limited
London Hydro
Maritime Electric Company
NB Power Holding Corporation
Newfoundland Power Inc.

Northwest Territories Power Corporation
Nova Scotia Power Inc.
Ontario Power Generation Inc.
PowerStream Inc.
SaskEnergy Incorporated
SaskPower
Toronto Hydro-Electric System Limited
Veridian Corporation
Westario Power Inc.
Yukon Energy Corporation
33
Appendix A Atlantic Canada Broader

Public Sector Organizations (N=32)
Annapolis Valley District Health Authority

Bank of Canada
Business Development Bank of Canada
Canada Lands Company CLC Limited
Canada Mortgage and Housing Corporation
Canada Post Corporation
Cape Breton District Health Authority
Cape Breton University
Capital District Health Authority
City of Charlottetown
Colchester East Hants District Health Authority
Cumberland District Health Authority
Dalhousie University
Farm Credit Canada
Government of Nova Scotia
Guysborough Antigonish Strait District Health Authority
Halifax Port Authority
Halifax Regional Municipality
IWK Health Centre

Newfoundland and Labrador Centre for Health Information
Nova Scotia Pension Agency
Pictou County District Health Authority
Saint John Police Force
South Shore District Health Authority
South West Nova District Health Authority
Treasury Board of Canada Secretariat
The United Church of Canada
University of New Brunswick
Workplace Health, Safety and Compensation Commission of N.B.
York Manor Inc.
34
Appendix A Canadian Broader Public Sector

Organizations (N=192) (contd.)
AMAPCEO
ATB Financial
The Agency for Co-operative Housing
Alberta Institute Purchasing Management Assn. of Canada
Alberta Investment Management Corporation
Alberta Local Authorities Pension Plan Corp.
Alberta Pension Services Corporation
Alberta Securities Commission
Alcohol and Gaming Commission of Ontario
Annapolis Valley District Health Authority
Association of Regina REALTORS Inc.
Association of Saskatchewan Realtors
Association of Universities and Colleges of Canada
Assuris
Autorit des Marchs Financiers du Qubec
B.C. Public Service Agency
Bank of Canada
Blue Water Bridge Canada
Bluewater District School Board
Bluewater Power Distribution Corporation
Bow Valley College
Brantford Energy Group of Companies
British Columbia Hydro and Power Authority
British Columbia Safety Authority
Build Toronto Inc.
Business Development Bank of Canada
CAAT Pension Plan
CPP Investment Board
CSA Group
Calgary Public Library
The Calgary Stampede

Calgary Zoo
Canada Deposit Insurance Corporation
Canada Foundation for Innovation
Canada Lands Company CLC Limited
Canada Mortgage and Housing Corporation
Canada Post Corporation
Canadian Bankers Association
Canadian Cancer Society - British Columbia & Yukon Division
Canadian Centre on Substance Abuse
Canadian Council of Christian Charities
Canadian Institutes of Health Research
Canadian Life and Health Insurance Association Inc.
Canadian Payments Association
Cape Breton District Health Authority
Cape Breton University
Capital District Health Authority
Centre Street Church
Certified Management Accountants of Saskatchewan
Chatham-Kent Health Alliance
Chicken Farmers of Ontario
City of Brantford
City of Charlottetown
City of Edmonton
City of Fort Saskatchewan
City of Kelowna
City of Nanaimo
City of Regina
City of St. Albert
Colchester East Hants District Health Authority
Concordia University College of Alberta

Construction Sector Council
The Corporation of the District of Peachland
Credit Union Deposit Guarantee Corporation - Saskatchewan
Cumberland District Health Authority
Cypress Regional Health Authority
Dalhousie University
Deposit Insurance Corporation of Ontario
Edmonton Airports
Edmonton Catholic School District
Educators Financial Group Inc.
Electricity Distributors Association
Enersource Hydro Mississauga
Engineers Canada
Evraz Place
Farm Credit Canada
Financial Institutions Commission of British Columbia
Five Hills Regional Health Authority
The Good Samaritan Society
Gouvernement du Qubec: Secrtariat du Conseil du trsor
Government of Alberta
Government of Manitoba
Government of the Northwest Territories
Government of Nova Scotia
Government of Nunavut
Government of Ontario
Grant MacEwan University
Greater Toronto Airports Authority
Guelph Hydro Electric Systems Inc.
Guysborough Antigonish Strait District Health Authority
35

Organizations (N=192) (contd.)
Halifax Port Authority
Halifax Regional Municipality
The Hamilton-Wentworth District School Board
Health Quality Council
Healthcare of Ontario Pension Plan
Hong Kong Trade Development Council
Horizon Utilities Corporation
House of Commons
Hydro One Brampton
Hydro One Inc.
Hydro Ottawa Limited
IWK Health Centre
Immigrant Services Society of British Columbia
Industry Training Authority
International Development Research Centre
Keewatin Yatthe Regional Health Authority
Kelsey Trail Regional Health Authority
LCBO
London Hydro
Mamawetan Churchill River Regional Health Authority
McMaster University
National Energy Board
Natural Sciences and Engineering Research Council of Canada
Newfoundland and Labrador Centre for Health Information
Northwest Territories Power Corporation
Nova Scotia Pension Agency
Nunavut Tunngavik Incorporated
OMERS Administration Corporation
Office of the Superintendent of Financial Institutions

Ontario Association of Food Banks
Ontario Lottery and Gaming Corporation
Ontario Pension Board
Ontario Power Authority
Ontario Power Generation Inc.
Ontario Teachers' Pension Plan Board
OPSEU Pension Trust
Pictou County District Health Authority
PowerStream Inc.
Prairie North Regional Health Authority
Prince Albert Parkland Regional Health Authority
Prince Rupert Port Authority
Public Sector Pension Investment Board
Red Deer College
Red River College
Regina Police Service
Regina Qu'Appelle Regional Health Authority
Regional District of Central Okanagan
Regional District of Nanaimo
Regional Municipality of Wood Buffalo
Registered Nurses Association of Northwest Territories and N
Royal Canadian Mint
Royal Roads University
SPARC BC
Safety Codes Council
Saint John Police Force
St. Lawrence Seaway Management Corporation
Saskatchewan Assessment Management Agency
Saskatchewan Association of Health Organizations
Saskatchewan Cancer Agency

Saskatchewan Government Insurance
Saskatchewan Housing Authorities
Saskatchewan Watershed Authority
Saskatchewan Workers' Compensation Board
Saskatoon Regional Health Authority
SaskEnergy Incorporated
SaskPower
SaskTel
South Shore District Health Authority
South West Nova District Health Authority
Strathcona County
Sun Country Regional Health Authority
Sunrise Regional Health Authority
TVOntario
Tk'emlps Indian Band
Toronto Hydro-Electric System Limited
Toronto Transit Commission
Town of Ladysmith
Treasury Board of Canada Secretariat
Trillium Lakelands District School Board
USC Education Savings Plans Inc.
Union of Northern Workers
The United Church of Canada
United Way of the Alberta Capital Region
University of Alberta
University of British Columbia
University of New Brunswick
University of Regina
University of Victoria
36

Organizations (N=192)
University of Winnipeg
Veridian Corporation
VisitBritain
Westario Power Inc.
Westbank First Nation
Western Canadian District, Christian & Missionary Alliance
Workers' Compensation Board - Alberta
Workers Compensation Board of Manitoba
Workplace Health, Safety and Compensation Commission of N.B.
Yellowhead Regional Library
York Manor Inc.
Yukon Energy Corporation
37
Appendix B: Job Size Benchmark Methodology

Positions are first evaluated using the Hay Group Guide Chart-Profile Method of Job
EvaluationSM and assigned Hay Points. The Hay Points are then used to define market
compensations based on a Hay database. Job Size Methodology helps to align jobs of
similar size.
Benefits
Encourages detailed understanding of organizations and their businesses
Reinforces importance of relative value in pay structures
Enables comparison of unusual or unique jobs to market data based on job size
Global acceptance of job evaluation methodology
Promotes consistency across countries, industries, companies and Hay offices
Reputation of Hay Guide Chart and Profile Methodology or Hay Points
Drawbacks
Requires training and expertise to use effectively
38
Appendix B: Keys to Job Evaluation

The method is based on Hay Groups long experience (over 50 years) with both private
and public sector clients. Job evaluation is the systematic process for ranking jobs logically
and fairly by comparing job against job or against a pre-determined scale to determine the
relative importance of jobs to an organization.
The evaluations are of jobs not people:
The performance, potential or current pay of the incumbent is irrelevant
The number of candidates available for a job or the dollar value the market puts on the
job do not make the job any larger or smaller
These factors are ignored during job evaluation. They are taken into
account in the pay administration process
The Hay job evaluation methodology is based on three main factors:
Know-How
The total of all knowledge and skill required to do the job
Problem Solving The amount and kind of thinking required such as analyzing,
reasoning, evaluating, creating, and using judgment
Accountability
The opportunity the job has to bring about results to the organization
39

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APPENDIX B

New Brunswick System Operator

2011 Hay Group. All Rights Reserved

Actual Total Cash Compensation

Broader Public Sector Broader Public Sector

Broader Public Sector Broader Public Sector

President and CEO

Chief Financial Officer

Manager Human Resources

Compensation positioning is most competitive when compared to the Canada Broader

2011 Hay Group. All Rights Reserved

Background & Mandate

This report sets out our methodology and observations

2011 Hay Group. All Rights Reserved

Background & Mandate (contd.)

2011 Hay Group. All Rights Reserved

2011 Hay Group. All Rights Reserved

All market data are as of May 2011

NBSOs compensation represents actual base salaries provided to its executives. It

2011 Hay Group. All Rights Reserved

2011 Hay Group. All Rights Reserved

Chief Financial Officer

Manager Human Resources

These evaluations represent a snapshot of how we understand the organization

NBSOs compensation philosophy is to target compensation close to the average of

We will base our analysis and recommendations on our understanding of NBSOs

2011 Hay Group. All Rights Reserved

Compensation Philosophy (contd.)

Depending on where NBSO decides to target compensation positioning, it will send a

2011 Hay Group. All Rights Reserved

Data has been presented in tables and charts

2011 Hay Group. All Rights Reserved

Compensation Analysis (contd.)

President and CEO

Total Points: 1868

President and CEO

Variance from Median

Variance from Median

Actual Total Cash Compensation

Broader Public Sector

Broader Public Sector

* Ins uffi ci ent da ta

2011 Hay Group. All Rights Reserved

Compensation Analysis (contd.)

Variance from Median

Total Points: 1232

Actual Total Cash Compensation

Broader Public Sector

Broader Public Sector

* Ins uffi ci ent da ta

2011 Hay Group. All Rights Reserved

Compensation Analysis (contd.)

Total Points: 1142

Variance from Median

Actual Total Cash Compensation

Broader Public Sector

Broader Public Sector

* Ins uffi ci ent da ta

2011 Hay Group. All Rights Reserved

Compensation Analysis (contd.)

Chief Financial Officer

Total Points: 1142

Variance from Median