TORONTO: Minister of Energy, Northern Development and Mines Greg Rickford has released the following statement on Hydro One:
“I am pleased to report that our government has delivered on its commitment to put the People of Ontario first and bring Hydro One’s executive compensation levels down to acceptable levels.
“The Hydro One Board of Directors has provided us with a compensation framework that is consistent with Management Board of Cabinet’s directive issued to the Board on February 21. “The maximum CEO compensation will now be $1.5 million annually, which is less than 25 per cent of the former CEO’s direct compensation.
This includes $500,000 in base salary, with performance-based short-term and long-term incentives making up the rest. Actual compensation could be lower than $1.5 million if targets are not met. We have been steadfast in our commitment to the People of Ontario to rein in the excess at Hydro One.
“Most significantly, performance targets will include the CEO’s contribution to reducing system costs, supporting our commitment to reduce Ontarians’ electricity rates by 12 per cent.
“Other newly appointed senior executives will be able to earn no more than 75 per cent of the CEO’s pay and the base, short-term and long-term incentive payment structure will be consistent with the CEO. Directors on the Board will now earn $80,000, Committee Chairs will earn $85,000 and the Chair of the Board will earn $120,000.
“Hydro One’s compliance with this directive allows us to move forward as a province. It sets the company on the right course for the future, proving that it can operate as a top-class electricity utility while reining in executive compensation and increasing public transparency.
“Moving forward, I am confident that Hydro One’s Board of Directors will continue to act with the trust and confidence of the people of Ontario