Minister’s statement regarding Hydro One
Yesterday, Minister of Energy, Northern Development and Mines Greg Rickford released the following statement on Hydro One executive compensation:
“Ontario’s Government for the People has taken decisive action to bring Hydro One’s executive compensation in line with levels with comparable utilities.
“After receiving a proposal last week that included a CEO compensation cap of $2.775 million, it is clear that Hydro One’s Board of Directors has failed to take steps to adequately reduce compensation for both the CEO and themselves as board members.
“Under the authority granted through the Hydro One Accountability Act, 2018, the Management Board of Cabinet has issued a directive requiring Hydro One to set a hard cap of $1.5 million per year in total maximum direct compensation for the next CEO of Hydro One.
“This cap will include a base salary of up to $500,000, with the remainder tied to short-term or long-term incentives. These incentives will be tied to measurable performance targets to be developed by Hydro One, including the CEO’s contribution to reductions in transmission and distribution costs that contribute to achieving the Province’s commitment to 12% reduction in electricity bills.
“The directive also includes a requirement of a total compensation cap of $80,000 per year for board members and $120,000 for the board chair. This is a reasonable and responsible level that more closely aligns compensation with other corporations like Ontario Power Generation, which produces approximately 50 per cent of Ontario’s electricity and operates a fleet of nuclear assets.
“After 15 years of inaction, our government is tackling the hydro mess left by the previous government and is committed to lowering rates by 12 per cent. We will never apologize for putting the people of Ontario first.
“Moving forward, I am confident that Hydro One’s board of directors will continue to take steps to earn the trust and confidence of the people of Ontario. I believe Hydro One’s best days are ahead, and the corporation will emerge stronger than ever while respecting Ontario’s electricity customers.”