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`V ' I � y; � . . <br /> MARKET EQUiT1f and SAL,ARY SET�ING <br /> . � . . �- . . . . . . . . . - . <br /> The comparable laborinark�t will include those cities that provide full-service, are in the <br /> Bay Area job pool, recognized as excellent organizations, and hav� comparable service <br /> outputs. These cities include Alameda, Berkeley,--Hayward Mt. Yew, Palo Aito, San <br /> Leandro, San Mateo, South San Francisco, and Sunnyvale. The foliowing factors will be <br /> included when conducting a° market study: 1) base top step salaries and/or control point <br /> minus and special performance premiums, and 2) empioyer paid PERS contributions: -- <br /> The salary range for each Department Head classification in the Executive Management <br /> Group is established by "using the lowest salaried city and the highest salaried city <br /> comparable classification. Individual Executive Management salaries for Departrnent <br /> Heads are reviewed by the City Manager on an annual basis and are set anywhere <br /> within the established high/low range based on performance. <br /> The salary range for Division Managers within the Executive Management Group shall <br /> be established using the same market cities but will be set at the median of the market <br /> Additionally, all Executive Management classifications shall: 1) receive a 2% of base � <br /> salary city contribution into a deferred compensation program and 2) maintain a <br /> minimum differential of 10% above the top step subordinate classifications. <br /> Adjustments in salary ranges to maintain the differential will be effective the same date <br /> the subordinate class received the adjustment. <br /> EXCEPTIONAL PERFORMANCE BONUS <br /> The City Council shall establish a bonus program for Department Heads in the Executive <br /> Management Group that will offer incentives and commensurate rewards for exceptional <br /> service or contributions. Any bonus granted under this program is at the discretion of <br /> the City Manager and is awarded when previously established stretch goals have been <br /> met or when the City Manager deems it appropriate. Department Heads in the <br /> Executive Management Group are eligible to receive �p to a 5% of their base salary one <br /> time each fiscal year. It is not expected that all Department Heads positions will receive <br /> bonuses each year since this program is intended to recognize only exceptional <br /> performance. This program is not a method of recognizing expected or above average <br /> performance. Again, the Bonus program is only for exceptional service to the city or <br /> community. Any bonus awarded under this program is not considered part of base <br /> salary nor is there any intention that any bonus �erve as the basis ��r any future <br /> compensation. <br /> Annually as part of the budget process, the City Manager recommends to council an <br /> amount to be appropriated for this program for the ensuing fiscal year. This amount <br /> 2 <br />