Remuneration for public sector executives is established by government and managed by the Government Sector Executive Remuneration Panel (GSERP). VPSC provides advice and support to the operations.
GSERP was formed in 2000 to administer the Government’s policy for executive remuneration in public entities defined under the Public Administration Act 2004.
The Panel comprises the Victorian Public Sector Commissioner as Chair and the Secretary of the relevant portfolio Department.
The Government’s Policy on Executive Remuneration in Public Entities (the GSERP Policy) seeks to ensure a rigorous approach to
- monitoring and reporting on executive remuneration
- determining remuneration outcomes.
GSERP Policy applies to
- Chief Executive Officers or equivalent role
- any person who has significant management responsibility and who is remunerated at or above $156,374 as at 1 July 2016.
Entities require approval for remuneration for
- all Chief Executive Officers
- endorsement for other executives’ total remuneration packages
- where the remuneration for an individual exceeds 80% of the TRP set by GSERP for the CEO
- the average total remuneration package of all the CEO’s direct reports will exceed 70% of the CEO’s package
- executive remuneration levels for positions in any new organisation.
A series of Frequently Asked Questions have been developed to provide information on issues relating to GSERP. These should be read in conjunction with the policy.
To assist Boards in the management of executive employment, a Proforma Executive Contract for Public Sector Executives has been developed. While use of the contract is not required, it contains the essential policy elements for executive employment and closely follows the public service model.
Public sector entities are required to participate regularly in the GSERP survey, reporting on the total remuneration packages and other key information on individuals covered by GSERP Policy.
It is important that correct classification of staff occurs before reporting. Correct classification provides assurance and supports:
- disclosure through accurate reporting in the GSERP Data Collection and in entities’ Annual Reports
- executives being subject to appropriate employment terms and conditions as set out in GSERP Policy and the recommended GSERP standard contract
- broader GSERP Policy compliance.