Canada to Tie Public Servant Performance Pay to Spending Cuts

The Canadian government is linking the performance pay of senior government workers to its effort to cut spending as it seeks to eliminate its budget deficit, Treasury Board President Tony Clement said.

To encourage over 8,600 executives to find savings, 40 percent of performance pay is being tied to the success of the government’s one-year “strategic” review of operating expenses, Clement said in a Bloomberg interview yesterday. The rest will be based on individual performance, a percentage that has usually been higher, according to Clement.