Who mandated the Board compensation package?
CIRA membership overwhelmingly approved a by-law amendment package at a Special Members’ Meeting (SMM) February 1, 2006, in Toronto. This included an amendment to By-Law 1, section 3.15 (c), directing the Board to retain the services of an independent consulting firm to establish compensation to which elected directors are entitled for performance of their duties.
The By-law change package was approved by member vote, with 251 of 307 members (81.75%) present voting to pass the changes.
Who developed the compensation package?
CIRA hired a third-party human resources consulting firm to conduct a board compensation survey. Twelve organizations of a similar size, scope and class were surveyed to form a comparison baseline. The consulting firm prepared a compensation framework for the Board of Directors based on the survey results. This framework was used to draft the compensation proposal brought forward to and approved by CIRA Members.
How was the survey for the Members’ consultation conducted?
With the help of a market research firm, CIRA surveyed its Members in early 2007 to measure support for the proposed Board of Directors compensation package. Members were contacted January 8, 2007 by email to participate in an online survey. Members were given instructions, background information and the proposed compensation package. The survey asked, “Do you agree that the proposed compensation plan for Elected Director is reasonable?” Members were also given the opportunity to provide comment.
What were the results from the Members’ consultation for the Board compensation package?
Members were invited to participate in the survey via a mass email sent to 249,990 members. The survey generated significant response:
- 12,675 Members completed the survey.
- 70.5% majority voted “yes” and agreed with the proposal demonstrating strong support for the compensation plan.
- 14.6% cast a “no” vote, indicating they didn’t agree with the proposed compensation plan.
- 14.8% answered “no opinion.”
Which Board members are eligible for compensation?
CIRA offers remuneration to Elected Board members to recognize their time and effort and to help the organization attract and retain experienced and knowledgeable members to its Board.
Ex-officio Board members, including CIRA’s President and CEO, Industry Canada’s representative and John Demco, are not eligible for compensation.
Why are CIRA Directors compensated?
Based on the results of the review of similar non-profit organizations, a compensation plan for CIRA Directors was developed to:
- Attract and retain skilled, productive Board members representative of the Canadian population.
- Ensure external market competitiveness and internal equity.
- Recognize the additional responsibilities undertaken by the Executive Committee and the Committee Chairs.
- Be fiscally responsible and consistent with corporate governance best practices.
Board members can also donate their compensation to a charity of their choice.
What compensation does the CIRA Board of Directors receive?
Directors are compensated based on their role within the Board of Directors, the number and types of meetings they attend, and any additional committee work performed.
Table 1. CIRA Director Compensation Schedule - Effective October 1, 2009
|
Position
|
Annual Retainer
|
Fee per Meeting
|
No. of Meetings
|
Annual Compensation Cap
|
|
Chair
|
$12,000
|
$500
|
8
|
$16,000
|
|
Vice Chair/Committee Chairs
|
$7,000
|
$500
|
8
|
$11,000
|
|
Director
|
$6,000
|
$500
|
8
|
$10,000
|
|
Standing Committee
|
|
Fee per Meeting
|
No. of Meetings
|
Annual Committee Member Compensation Cap
|
|
Audit Committee
|
|
$200
|
4
|
$800
|
|
Technical Oversight Committee
|
|
$200
|
4
|
$800
|
|
Executive Committee
|
|
$200
|
8
|
$1,600
|
|
Governance Committee
|
|
$200
|
4
|
$800
|
