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IL COMPENSATION <br /> { ARKET EQUITY and SALARY SETTING <br /> The comparable labor market will include those cities that provide full-service, are in the <br /> Bay Area job pool, recognized as excellent organizations, and have comparable service <br /> outputs. These cities include Alameda, Berkeley, Hayward, Mt. View, Palo Alto, San <br /> Leandro, San Mateo, South San Francisco, and Sunnyvale. The following 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) employer paid PERS contributions. <br /> Upon Council direction the City Manager shall request external labor market <br /> comparisons for all classifications 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 implementation of the new salary ranges for the Executive Management Group. <br /> The salary range for each classification in the Executive Management Group is <br /> established by using the lowest salaried city and the highest salaried city comparable <br /> classification . Individual Executive Management salaries for Department Heads are <br /> reviewed by the City Manager on an annual basis and are set anywhere within the <br /> established high/low range based on performance. Individual 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 established <br /> high/low range based on performance <br /> Additionally, all Executive Management classifications shall maintain a minimum <br /> differential of 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 approval for adjustments to salary ranges due <br /> to compaction shall not be required. <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 up 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 />