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6.2B <br /> Page 8 <br /> II. CUMPENSATIUN <br /> MARKET EQUITY and SALARY SETTING <br /> The comparabie labor market will include those cities that provide fuil-service, are in the <br /> Bay Area job paal, recognized as excellent organizations, and have comparable service <br /> outputs. These cities include Alameda, Berkeley, Hayward, Mt. View, Paio Aito, San <br /> Leandro, San Ma�eo, South San Francisco, and Sunnyvale. The following factors will be <br /> included when conducting a market study: 1) base top step salaries andJor control poin� <br /> minus and special perfarmance premiums, and 2) employer paid PERS contributions. <br /> Upon Council directifln the Gity Mana�er shall reques� ��erna! labar market <br /> comparisons for af! classificatinns in the Executive Management Group. Upon review of <br /> the labor market comparison and the City's financial condition the City Council may <br /> approve impfementation of the new salary ranges for the Executive Management Group. <br /> The saEary range for each classificatian in the Executive Management Group is <br /> established by using the lowest salaried city and the highest salaried city comparable <br /> ctassification. Irtdividual Executive Management salaries for Department Heads are <br /> reviewed by the City Manager on an annua6 basis and are set anywhere within fihe <br /> established high/low range based on perfarmance. Tndividual Executive Management <br /> salaries for Division Managers are reviewed by the Department Head and recommended <br /> to the City Manager on an annual basis and are set anywhere within the estabiished <br /> high/low range based on performance <br /> Additionaliy, ail rxecutive i�ianagement classificatinns �naii maintain a minimum <br /> differential af 10% above the top step subordinate classifications. Adjustments in <br /> salary ranges to maintain the differential will be effective the same date the subordinate <br /> class received the adjustment. Council approva! for adjustments to salary ranges due <br /> to compaction shalE not be required. <br /> EXCEPTIONAL PERFORMANCE SOt��.1S <br /> The City Cnunci! shaU establish a bonus program for Department HEads in the Executive <br /> Management Graup that wilf offer incentives and commensurate rewards for exceptional <br /> service ar contributions. Any bonus granted under this program is at the discretion of <br /> the City Manager and is awarded when previausly established stretch goals have been <br /> met or when the City Manager deems it appropriate. Department Heads in the <br /> Executive Management Graup are eligibfe ta receive up to a 5% of their base salary one <br /> time each fiscal year. It is not expected that all Department Heads positians wif{ receive <br /> bonuses each year since this program is intended to recognize only exceptionaf <br /> 2 <br />