The Alberta government delivers vital program and services to Albertans through provincial agencies. These entities are managed by senior executives who provide guidance and make decisions on the delivery of these programs and services.
In 2008, we audited the systems that agencies use to select, evaluate and compensate chief executive officers. Further, an audit in 2009 looked at agencies’ compensation not only of chief executive officers but of other senior executives as well.
What we concluded
In light of new legislation, regulation and centralized approach, our 2008 and 2009 recommendations are no longer applicable. We made them in an environment where agency boards had primary responsibility for executive compensation decisions, but the new approach shifts significant responsibility to the government. We are therefore withdrawing our recommendations.
In withdrawing our recommendations, we are not concluding on the adequacy of the government’s current systems on the adequacy of the government’s current systems on executive compensation. To form a conclusion on the current systems, we would need to perform a new audit. When planning future audits, we will consider whether such an audit could provide value.