Human Resources Committee – December 5, 2019
2020 Investment Return Ranges for Compensation Plans
The Human Resources Committee Mandate includes approval of all compensation plans for executive-level employees, which includes annual investment return ranges to ensure continued governance and oversight over the primary driver of compensation plans.
The methodology used to determine 2020 investment return ranges has not changed.
Based on the discussion held at the Joint Investment Committee and Human Resources Committee meeting on December 5, 2019, the Human Resources Committee approved the 2020 Investment Return Ranges for Compensation Plans, effective January 1, 2020.
Compensation Framework Refresh – Part 1
In 2019, OMERS engaged Willis Towers Watson (WTW) on a project to simplify compensation design globally, reduce volatility in compensation outcomes while continuing to pay for performance, and create flexibility for leaders to apply judgement through qualitative metrics.
In conjunction with WTW, Management recommended a two-part approach to changing the compensation framework.
In Part 1, to be implemented January 1, 2020, Management recommended moving to a 4-year investment return range in 2020 and subsequently moving to a 5-year investment return range in 2021 to reduce volatility and further align compensation to OMERS investment beliefs and long-term results.
Following questions and discussion, the Human Resources Committee approved the shift from a 3-year to a 4-year investment return range and the shift from a 4-year to a 5-year investment return range, both effective January 1, 2020.