Hydro One CEO Pay Capped At $1.5 Million
CBJ — The Ontario provincial government has decreed that the CEO of Hydro One not be paid any more than $1.5 million per year, which not surprisingly, is substantially lower than the partially privatized utility had wanted.
The provincial government and Hydro One have been in disagreement over the CEO’s maximum remuneration, with the company refusing repeated requests to slash the total compensation below $2,775,000.
Energy Minister Greg Rickford had asked Hydro One last week to come up with a revised executive compensation framework that set its CEO’s salary and incentives no higher than $1.5 million, but the utility didn’t provide a counter offer.
In the absence of a formal response from Hydro One, Rickford took it upon himself to invoke a formal directive that compels Hydro One to set the CEO’s base salary no higher than $500,000 with a maximum of $1 million in incentives. Those incentives must be dependent on meeting certain targets, including reducing transmission and distribution costs.
The Tories have promised to reduce electricity bills by 12%.
The directive also requires that the Hydro One board chair be paid no more than $120,000 and board members be paid no more than $80,000 per year.