This document is part of the Victorian Public Entity executive employment resource.

8.1 Performance management

An executive’s performance should be reviewed regularly and employers can determine the frequency of formal reviews that best suit their operating environment. Executive performance management establishes the link between the whole of government, the employer and individual executive objectives and priorities.

All executives should have a written performance plan that measures their effectiveness to deliver organisational and government outcomes. A performance management plan should:

  • be in written format
  • be determined by the employer in consultation with the executive
  • be determined at or within three months following commencement of employment
  • include measurable performance goals that set clear, connected and collaborative expectations
  • be reviewed on a regular basis – at least once a year.

VPSC has produced performance management guidance including Assessing a CEO’s performance and the VPS Performance Management Framework.

8.2 Performance incentive payments (bonuses)

On 4 February 2020 the Governor in Council gave effect to the Premier’s decision to abolish the use of bonuses for executives in public entities by issuing a new Public Entity Executive Remuneration Policy (PEER Policy). Further information on the phasing out of bonuses is available at the page Bonus Removal Offer – Executive Contracts.

8.3 Managing under performance

Where the performance of an executive is considered as requiring improvement, it is the executive’s and the employer’s responsibility to:

  • identify the cause(s)
  • design a development plan with measurable performance standards – both the executive and employer should agree to this plan
  • monitor improvement – the monitoring period should be between one and three months.

If the executive’s performance does not improve after the second review period, this may be considered as a basis for terminating the executive’s contract. Executives should check with the employer’s HR unit for further information on performance management process.