Friday , January 15 2021

Ontario government cover Hydro One compensation executive at $ 1.5 million

Ontario government Premier Doug Ford has decided to cover the total compensation for Hydro's next chief executive at $ 1.5 million, senior government sources told Globe Globe.

The plan to introduce a "hard hat" of $ 1.5 million in total compensation for Hydro's next chief executive was made this week by the Priorities Committee, a meeting with Mr. Ford and his senior government colleagues, sources said. This could include wages, as well as options and benefits, but sources could not say whether the quota included growth from shares, nor was it clear what compensation would have been applied if the person remained.

The sources were anonymously informed by Glob that matters were secret.

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The $ 1.5 million figure was perceived by Mr. Ford and his cabinet ministers as competitive salaries, but according to Mr Ford's campaign to reduce service costs and lower the price of the hydro, a senior government source said.

Former CEO Mayo Schmidt has become a lightning rod for resentment over the rise in electricity prices during the spring election campaign, and Mr. Ford called the CEO of "The Man Six Million Dollars" because of his compensation promised to fire the executive if elected. In July Mr. Schmidt retired and the Expediency Council abruptly withdrew after reaching an agreement with the new Turi government. Mr. Ford announced that he had made his commitment, but Mr. Schmidt qualified for incentives and options worth at least $ 9 million with retirement.

The chairman of Hydro's board has already announced plans for the government for the cap and is set to hold a board meeting on Friday, sources said.

Globe and Medsey last month reported a dispute between Mr. Ford's government and the independent directors of the Hydro Board, who will be the next chief executive of the service, and government and industry sources told the Globe that Mr. Ford has his own favorite candidates to lead Hydro One, Toronto Hydro CEO Anthony Haines.

The province holds a 47 percent stake in each hydro one, after the service was partially privatized by the previous liberal government. The board of directors of 10 people has six independent directors and the rest are appointed by the government.

A senior government official told the Globe that the district respected the manager's ability to choose his next CEO, but he should be part of the compensation set by the government.

Mr. Ford promised to cut hydro rates by an additional 12 percent. The columns also passed Omnibus legislation which, among other things, grants the government authority to approve compensation managers in one hydro. The bill requires Hydro Board one to establish a new compensation framework for the CEO of the Board of Directors in consultation with the county and the five largest shareholders of the service.

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Progressive conservatives have already gone through their own legislation, known as the "one din din law," which gives the prime minister vetoed executive fees. The new act also requires the company to find out what it intends to pay senior executives, something the new council has not done.

Hydro One chair Tom Woods recently said Washington State Service regulator was considering paying its next CEO between $ 2 million and $ 4 million a year.At that time, a retired investment banker said Ontario government has not approved the board's compensation plan.

With reports from Andrew Willis and the Canadian press

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