Tarion’s board is skills-based and composed of professionals who have extensive experience and expertise appropriate to Tarion’s mandate and who understand and convey the interests of key stakeholders including new home buyers, builders, consumer advocates, the financial community, and the provincial and various municipal governments of Ontario.
The Board is responsible for the oversight of the organization, including promoting sound governance practices, conducting regulatory oversight and taking a leading role in setting the strategic direction of the organization in areas ranging from consumer protection, warranty administration and financial stewardship.
The Tarion board is compensated for their contributions of time and expertise as part of a full schedule of board and committee meetings and other supplementary meetings. The compensation for Tarion’s board is reviewed every two years by independent external experts and is benchmarked against other Designated Administrative Authorities as well as other comparable private and broader public sector organizations.
Each board member receives an annual retainer and a per diem fee for each meeting attended.
Retainer - $17,500 per annum for directors. The Board Chair receives $45,000 per annum. Committee Chairs receive an additional $6,000 with the exception of the Chair of the Audit & Risk and Investment Committee who receive $8,000. Advisory Council Chairs receive $4,000.
Meeting Fee - $800 per meeting.
Board members are also reimbursed for travel and other reasonable out-of-pocket expenses associated with attendance at meetings or special functions.
Tarion’s executive compensation policy is aimed at ensuring we can attract qualified individuals to fill their roles in the context of a modern consumer oriented Administrative Authority (AA). As a not for-profit AA, Tarion is situated in between being a private corporation and being part of the broader public sector. Tarion benchmarks compensation by looking at a 50/50 blend of comparable private and public sector companies, and uses the 50th percentile of that blend as its target for compensation. Tarion uses an independent third party to advise on compensation ranges.
Tarion uses an incentive program as part of its compensation for executives. The incentive program is also benchmarked in a similar way against a blend of private and broader public sector comparable companies. The incentive program for executives ranges from between 15% to 30% depending on the executive position. The incentive program is based on meeting specific performance targets which are aligned with Tarion’s not-for-profit status and its consumer protection and legislative mandate.
2022 performance indicators for Tarion are set out in the table below, including how they are weighted:
2022 Balanced Score Card Incentive Plan – Indicators & Weightings
The 2022 Corporate Key Performance Indicators are aligned with Tarion’s four strategic objectives as outlined in the 2022 Business Plan: enhance consumer outcomes, being a trusted resource, empowering our stakeholders and supporting our people and culture.
|Enhance Consumer Outcomes||30%|
|Consumer Service Orientation Index (independent survey of homeowners’ views of Tarion’s service level)||15%|
Customer Interaction ('real time' feedback from homeowners and builders at key service touch points)
|Being a Trusted Resource||20%|
|Implementation of remaining Recommendations from the Auditor General of Ontario’s Report||10%|
|Implementation of remaining Recommendations from the Standing Committee on Public Accounts||10%|
|Empowering Our Stakeholders||30%|
|Redesign of Tarion's MyHome homeowner portal and changes to the claims process to improve homeowner experience.||15%|
|Call response time in the Call Centre.||5%|
|Conciliation Completed to Conciliation Assessment Report issued elapsed time.||5%|
|Implementation of enhancements to Tarion's BuilderLink builder portal and to the home enrolment process||5%|
|Supporting Our People and Culture||20%|
|Employee Satisfaction Score||10%|
|Roll out of Tarion's new Mission, Vision, Values and consumer awareness initiatives.||10%|
Statement of Past Compensation
As an Administrative Authority, Tarion discloses aggregate salary and benefit costs in our annual financial statements.
On September 30, 2019, the Minister of Government and Consumer Services issued a Minister’s Order directing Tarion to disclose board and executive compensation effective October 15. Tarion fully supports the government’s mandate to enhance transparency and has posted a statement of past compensation below and will provide this information on an annual basis at the end of the first quarter (March 31) each year.