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Performance pay has been controversial management tool since it was first implemented in 1980s and its effectiveness is debated whenever a project is bungled. The malfunctioning Phoenix system raises questions about its effectiveness for managing large “enterprise-wide” projects that take years to design and roll out and involve many players.

When Public Services Minister Judy Foote was asked whether executives in her department would be getting performance pay, she said it was the “purview” of the deputy minister not the minister. She added she had her own views about performance pay but did not elaborate.

Meanwhile, the department confirmed that the Miramichi pay centre recently began processing performance pay for the executives who work in the 46 departments that use the centre.

Public Services had earlier promised the executive cadre that it would start processing their performance pay once the Oct 31 deadline to clear the backlog of 82,000 cases had been cleared. The government missed that Oct. 31 deadline, which left many executives wondering about the tax implications if the processing of performance pay was further delayed.

Deputy ministers typically rate their executives and send their assessments to Treasury Board by the end of June. Executives are then informed in July about how much performance pay or bonuses they will receive, with payments following in the next several months. Public Services, the department that oversaw the design and implementation of Phoenix, has taken the heat for the glitches and problems that have plagued it since the first rollout in February.

Under the plan, deputy ministers’ and executives’ cash compensation includes base salary, performance pay and bonus.

Poor performers who don’t meet any of their commitments get nothing but their base pay — without that year’s annual raise. A solid performer gets the yearly raise and performance pay. The superstars, however, get the raise, up to performance pay plus a bonus. Performance pay must be re-earned every year.