All agencies will have fixed term lengths for directors, with renewal conditional on performance. For public trust, corporate enterprise, service delivery and advisory agencies, the maximum consecutive service for directors is 10 or fewer years. For adjudicative agencies, the maximum consecutive service is 12 or fewer years. In cases where new term lengths are being established, staggered appointment termination dates will be used to support succession planning and continuity.

Discussion

Fixed terms are a tool to promote balance between renewal and experience on agency boards. Leading practice suggests that setting a term of a reasonable number of years (three or four), renewable once, is an effective approach for most agencies. Regulatory/adjudicative agencies may benefit from the experience of longer maximum years.

Term renewal

The precise length of term and the number of renewals allowed will be up to the individual agencies and their ministers, as long as the total length of service does not exceed 10 years (12 for regulatory/adjudicative agencies), and renewal is based on performance and approval of the minister. Best practice indicates terms be staggered so that no more than one-third of the directors are turning over at once.

Most existing fixed term practices in use in agencies meet the requirements of this policy. In all cases, renewal for a second or third term is conditional on performance, and at the discretion of the minister.

Chair

Some agencies find it useful to have practices that allow their chairs to serve longer periods than other directors, generally in order to accommodate at least one term as a director, followed by two terms as chair. This practice is consistent with the policy as long as the total number of consecutive years of service does not exceed 10 years (12 for regulatory/adjudicative agencies). As with director reappointments, the second term as chair should be contingent on satisfactory performance.

Transparency

Agency policies regarding fixed terms must be clearly spelled out and explained to all directors. Generally, this will be accomplished most effectively through mandate and roles documents, often supplemented by agency by-laws. Ministers are responsible for term limits and reappointments based on sound performance. Generally, the chairs will provide performance recommendations about directors to the minister during the reappointment process.