The Victorian Public Entity Executive Classification Framework (PEECF) provides clarity on the expectations of executives at different levels. It sets a consistent and transparent basis for classifying public entity executive positions into one of three bands, using a methodology which scores the work value of a given position.
The PEECF applies to the classification of all executive positions in entities listed in Schedule One and Two of the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards (Prescribed Public Entities) Regulations 2019. This includes current, new and vacant positions but excludes public entity executives employed under Part 3 of the Public Administration Act 2004. Part 3 executives in public entities should follow the Victorian Public Service Executive Classification Framework.
The definition of an executive to whom the PEECF applies is based on (the definition of executives in a public entity prescribed under the VIRTIPS Regulations contained in) paragraph 4.1 of the Public Entity Executive Remuneration Policy[link].
Executives in Prescribed Public Entities must be classified against the work value assessment methodology set out in the PEECF or, in the case of executives employed under Part 3 of the Public Administration Act 2004, the Victorian Public Service Executive Classification Framework (VPSCF) [link]. The relevant classification and work value assessments must occur within 12 months of the Determination or by 31 December 2021 (whichever is later).
Delay to work value assessments beyond this timeline will only be considered in exceptional circumstances and with the written consent of the relevant portfolio department Secretary.
Assessment and classification by the employer must occur prior to creating a new position, renewing an expiring contract or making a remuneration adjustment, as required by the PEER Policy.
There is a broad range of work value amongst public entity Chief Executive Officers which requires a framework that can accommodate this diversity as outlined in 1.5 below.
The PEECF provides:
- a clear methodology for classifying positions and a good foundation for classification decisions;
- an assessment methodology that is easy to understand, simple to use, and that can be applied to executive positions across the public entities.
The PEECF has been refined from the Victorian Public Service Executive Classification Framework (VPSCF) and as far as possible aligns to that framework in the interests of improving consistency between the public service and public entities.
Executive classification bands
There are three public entity executive classification bands: PESES-1, PESES-2 and PESES‑3. The band classification of a position is determined by the following:
- level of accountability;
- complexity of work undertaken, and the associated knowledge required;
- management and oversight of subordinates;
- associated risk; and,
- authority to make decisions, form policy and/or provide advice and recommendations within the organisation and to other public sector stakeholders.
Chief Executive Officers
- Chief Executive Officers, or equivalent positions (CEO) of Victorian public entities can lead organisations which range in size from less than 10 staff to more than 1,000. They represent approximately 10 per cent of the public entity executive workforce.
- Acknowledging the diversity of CEO positions in public entities, the PEECF has been designed to allow for a public entity CEO to be assessed as sitting in any one of the three PESES bands. The position is assessed using the same work value criteria as will be applied to all public entity executive positions.
- In some instances, a Chief Executive Officer may be assessed to have a work value below an executive classification as defined by the PEECF but will continue to retain the legislated title of Chief Executive Officer (or equivalent) and will continue to be defined as an executive for the purposes of the PEER Policy and the Tribunal’s Determination. An outline of this is presented in Table 1 below, where the full detail of the methodology can be found in subsequent sections.
Table 1: Chief Executive Officer classifications
|Public Entity Chief Executive Officers|
|Classification assessment||Public entity CEO who does not meet a PESES band||Public entity CEO in PESES Band 1||Public entity CEO in PESES Band 2||Public entity CEO in PESES Band 3|
|Framework status||Not classified under this framework||Classified under this framework|
|Who it applies to||Public entity Chief Executive Officers whose work value score does not meet the threshold for an executive classification under this framework||Public entity Chief Executive Officers who meet the work value score equivalent to PESES-1 (see section 2.3)||Public entity Chief Executive Officers who meet the work value score equivalent to PESES-2 (see section 2.3)||Public entity Chief Executive Officers who meet the work value score equivalent to PESES-3 (see section 2.3)|