Public Sector Executive Remuneration
The role of the Office of Public Sector Executive Remuneration
The Office of Public Sector Executive Remuneration (OPSER) was established in October 2018. The OPSER oversees the government's public entity executive remuneration policy. OPSER also supports better decision making about public sector executive remuneration.
The Special Adviser, Public Sector Executive Remuneration, heads the OPSER.
Who is the Special Adviser
Mr Warren McCann is the Special Adviser, Public Sector Executive Remuneration. Mr McCann served in South Australia as the head of the Department of Premier and Cabinet. He is also a former Commissioner for Public Sector Employment in South Australia. Mr McCann has specialist knowledge in the application of public sector employment principles.
Public Entity Executive Remuneration Policy
The OPSER oversees an updated Victorian Government Public Entity Executive Remuneration Policy.
The updated policy and process replaces the Government Sector Executive Remuneration Policy (GSERP) policy, administered by the Victorian Public Sector Commission (VPSC).
While the conditions of approval for executive remuneration are similar to GSERP requirements, there are some changes. Once a public entity has submitted a proposal, the relevant portfolio department will submit their comments. It is expected that either the Secretary or relevant Deputy Secretary will provide sign-off on comments submitted. The policy also lists the public entities that must comply.
As of 8 November, new submissions should be made to OPSER.
Make a submission
Boards should use this guidance material when making a submission. Submissions already under consideration will not need to be resubmitted. These will be completed in collaboration between VPSC and OPSER.
A board Chair of a specified entity must make a submission to OPSER seeking approval for an executive's remuneration in the following circumstances:
- incoming CEO in a newly established or existing public entity
- reappointment of an incumbent CEO, where an increase in the total remuneration package (TRP) is proposed
- any proposed adjustment to a CEO’s TRP that is greater than the Premier’s annual adjustment
- subordinate executives, as outlined in section 4 of the policy.
This provides guidance for:
- boards of public entities to prepare their executive remuneration submissions for OPSER
- departments to review and provide comments on submissions prepared by the public entities in their portfolios.
When completing the online form, a board Chair must give consideration to the guiding principles outlined in the policy, and the following key questions:
- What is the proposed TRP?
- If a re-appointment, or an increase in TRP of an existing executive is proposed, how has the incumbent performed in the role with reference to performance targets?
- What is the current (or previous) executive’s TRP (if applicable)?
- What benchmarks and/or comparators (such as work value assessments by remuneration consultants) have been used to support the remuneration proposed in the submission?
- What are the key functions of the public entity, including how it contributes to achieving the government’s objectives?
- What are the specific responsibilities of the executive in this public entity?
- What future challenges are expected to affect the duties of the executive?
- What unique skillsets, and specific experience, does the executive bring to the role to deliver the public entity’s objectives?
- Were there specific pressures in the market, including any particular difficulties in finding a candidate with suitable skills and experience?
- Does the proposed remuneration include provision for a bonus opportunity and, if so, what is the maximum bonus opportunity?
Department review of submissions
The portfolio department is required to review and comment on the information provided by the public entity in its submission. The department should refer to the guiding principles outlined in the executive remuneration policy and the considerations below:
- Comment on any particular challenges or opportunities facing the public entity in the near future that are relevant for determining the appropriate remuneration level for the preferred candidate.
- Comment on the recent overall performance of the public entity relative to its objectives and expected outcomes, and relative to the performance of similar public entities in the department’s portfolio.
- Comment on the recent performance of the executive, including where possible relative performance of the executive relative to similar executives in the portfolio, where applicable.
- Briefly include any other comments considered relevant for determining the appropriate remuneration level for this executive role, and for the preferred candidate.
Enquiries about non-remuneration aspects of executive employment should be made to the Victorian Public Sector Commission.
Enquiries about roles or contractual conditions can be made to each board’s departmental executive employment team.
Phone: 03 9651 1021
Postal address: GPO Box 2392 Melbourne Victoria 3001