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Toronto Hydro CR Report 2016

INTRODUCTION MATERIALITY AND STAKEHOLDER ENGAGEMENT OUR CITY OUR OUR PEOPLE ENVIRONMENT GLOSSARY AT A GLANCE Compensation and remuneration Toronto Hydro’s compensation strategy focuses on maintaining the ability to attract, motivate, and retain skilled employees. Toronto Hydro reviews the market-competitiveness of compensation packages for non-union employees annually during business planning and budgeting process. This review begins with participating in total compensation salary surveys offered through independent consulting firms. Comparisons are made of compensation data (i.e. base salary, target performance pay, and target total cash compensation) against aggregate information from companies of similar size, industry, and location. Toronto Hydro also uses benchmarking results to adjust job rates to better align salary ranges with the competitive market. The findings of the benchmarking exercise and the corporate budget are key considerations for any recommendation to the Board of Directors of Toronto Hydro Corporation regarding merit adjustments for the coming year. The final salary budget requires the approval of the Board of Directors. Compensation Toronto Hydro provides non-unionized employees with a total cash compensation package comprised of two elements: base salary and variable performance pay. Base salary compensates an employee for completion of their responsibilities, accountabilities and technical skills, while variable performance pay rewards employees for their contribution to the achievement of business goals and objectives tied to the organization’s pillars in combination with the successfully demonstrated corporate competencies. Toronto Hydro’s compensation associated with unionized employees is negotiated through the periodic collective bargaining processes. Employees who are part of the Society of Energy Professionals are also eligible for variable performance pay based on their achievement of the deliverables outlined in their annual performance contract, as well as the achievement of the utility’s performance objectives. OUR PEOPLE I TORONTO HYDRO 69 G4-LA13


Toronto Hydro CR Report 2016
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