Compensation Philosophy Overview
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NBIMC’s Board of Directors, with the assistance of expert governance advisors, developed
a Compensation Philosophy, which supports NBIMC’s strategy, desired organizational culture,
and compensation positioning within the competitive market place.
NBIMC’s Compensation Philosophy
- NBIMC believes that employees are key to the performance of the Corporation; as such
it is committed to providing them with competitive working conditions and compensation.
Compensation Principles
The compensation program design focuses employees on delivering NBIMC’s pension promise.
The compensation program promotes a pay-for-performance culture, which focuses employee
efforts on critical business/performance targets and rewards for superior performance
results. More specifically;
- NBIMC’s Human Resources Committee will review, and recommend for approval to the
Board, the compensation program and respective levels for the President and CEO annually.
- There is a direct correlation between the level of employee seniority and at risk
compensation. The more senior the position within NBIMC, the greater the portion of
“at-risk” compensation.
- NBIMC’s Total Compensation Package is designed to attract and retain high quality
professionals by emphasizing a “team” culture that supports communication, transparency
and accountability. The team culture endorses decentralized decision making and ensures
employee interests align with pensioners and stakeholders interests and objectives through
the use of a pay-for-performance incentive program, which measures both quantitative and
qualitative measures.
- NBIMC Management will review the compensation program levels of all employees annually
to make sure they are in line with the Compensation Philosophy.
- NBIMC operates on the general principle that base salaries will be paid at the median
of the respective comparator group, while also taking into account the pension funds asset
size, investment strategy and internal equity.
- NBIMC’s incentive programs will pay in the top quartile of the comparator group only
when maximum performance and results are achieved for the stakeholders. The investment
team employees will have a higher percentage of at-risk compensation tied to their incentive
programs, compared to employees within the finance and administration teams.
- The Senior Management positions are compared to pension funds of similar asset size
and investment strategies;
- The Investment Team positions are compared to pension funds of similar asset size and
investment strategies;
- Investment employee short and long-term compensation is aligned close to the
investment returns that they are responsible for.
- The Finance and Administration team positions are compared to both east coast organizations
and pension funds of similar asset size and complexity.
- Finance and Administration employees’ compensation is aligned closer to the
strategic/business plan objectives and long-term investment returns.
NBIMC’s Compensation Philosophy aims to keep the pension promise in order to ensure the future
financial security for all of its stakeholders.