B7007 - REDLINE RESCIND.PDF

Maricopa County — Formal (2018-02-07)

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Maricopa County Internal Policy Number: B7007
Policy Title: Management Incentive Issue Date:
11/2002RESCINDED: MM-
DD-YYYY
Policy Category: Employee Initiating Department: Revision Date:
Compensation Management and Budget 12/2010Board of
Supervisors Agenda
Number: C-##-##-###-#-##
I. Purpose
The purpose of this policy is to provide a procedure under which management incentive
plans may be adopted to reward executive management team members through
performance incentives if greater performance levels are achieved and results are
obtained.
II. Authority and Responsibilities
III. The Board of Supervisors/Board of Directors is responsible for authorizing the use
of the program for any given fiscal year and must approve each management
incentive plan before it can be implemented. The Office of Management and Budget
(OMB) is responsible for administering this policy. Departments are required to
follow this policy and to direct any questions to OMB.
IV. Applicability
This policy applies to all Maricopa County elected offices and appointed departments as
well as Special Districts that follow Maricopa County’s compensation plan, policies, and
procedures. This includes all full and part-time unclassified employees (except for
elected officials and temporary employees) who are considered members of an
executive management team. Volunteers and independent contractors are not County
employees and are not subject to the provisions of this policy.
V. Definitions
A. Board: The Maricopa County Board of Supervisors, the Maricopa County Flood
Control District Board of Directors, the Maricopa County Library District Board of
Directors, and the Maricopa County Stadium District Board of Directors.
B. Department: For the purpose of this policy, all Maricopa County elected and
appointed departments as well as all Special Districts that follow Maricopa
County’s compensation plan, policies, and procedures.
C. Executive Management Team: For the purpose of this policy, unclassified
employees who are considered members of an executive management team at a
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level equivalent to department deputy director or above (i.e., chief deputy of an
elected official, county manager, deputy county manager, assistant county
manager, department director, department deputy director, or an equivalent level
position).
VI. General Provisions
A. Departments may request the approval of management incentive plans for limited
members of their executive management team.
B. Unlike the County’s pay for performance plans which are based on employees’
past performance, management incentive plans are designed to incentivize future
performance by rewarding executive management teams for achieving greater
performance levels and results.
VII. Procedures
A. If authorized by the Board for any given fiscal year, departments must submit their
management incentive plans in writing to the Office of Management and Budget. A
predefined format will be used that includes a narrative that explains what, why,
who, how, savings/revenue, distribution, when, and a program flow diagram that
mirrors the narrative. The length of a management incentive plan is one year.
Management incentive plans must be submitted by April 1st for the upcoming fiscal
year beginning July 1st.
B. The Office of Management and Budget’s Employee Compensation and Budget
divisions shall review all management incentive plans prior to submission to the
Board. Board approval is required to implement all management incentive plans
before the applicable fiscal year begins.
C. All management incentive plans must be based on Managing for Results (MFR)
goals that are either derived from or directly support the department's MFR strategic
plan. Departmental management incentive goals will be based on historical data,
which can be validated from existing systems and/or departments.
D. Incentive awards shall be funded from the department’s current budget. Each
department must remain within its expenditure budget in order to distribute an
award under the plan.
E. Individual incentive awards may not exceed $10,000 per fiscal year, and may be
awarded incrementally throughout the year as a temporary salary increase in the
form of cash, deferred compensation, or a combination of both, as specified in the
individual management incentive plan.
F. All unclassified members of an executive management team (excluding temporary
employees) may be eligible for an award as defined by the management incentive
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plan. In addition, to be eligible to receive an award, an individual employee’s
performance must consistently meet or exceed departmental standards during the
management incentive plan period.
G. To earn a management incentive award, an employee must remain employed
through the date of award distribution. Employees who have transferred from one
department to another department after the plan year has ended may be permitted
to receive an award as defined by the appropriate plan.
H. Any changes in the department during the fiscal year that may affect a
management incentive plan must be disclosed to the Office of Management and
Budget for review. If this review indicates the change will have a significant effect
on the management incentive plan, the review may result in a recommendation
that the plan be amended or cancelled. Any amendment or cancellation of a
management incentive plan requires Board action.
I. A comprehensive validation report, with the necessary documentation, will be
submitted to the Office of Management and Budget when the measurement period
is complete. This report will be submitted whether or not the management incentive
plan goals were achieved. This report must include an original signature of the
submitter and the department director, if applicable, which indicates that the results
submitted have been authenticated. After the report has been evaluated, the
Office of Management and Budget may require the department to perform
additional analysis, and to supply additional supporting documents.
J.A. Each proposed management incentive plan must comply with this policy, or
must identify any provision that does not comply and request approval of the
exception before the plan year period begins.
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