Former Hydro One CEO Mayo Schmidt goes to take dwelling much more cash than Premier Doug Ford let on when he introduced Schmidt’s retirement on Thursday.
Ford’s assertion that Schmidt will receive solely $400,000 as an alternative of the $10.7 million assured by his contract ignores the truth that Schmidt will nonetheless grasp on to his stock choices and different incentives granted as a part of his govt compensation package deal.
“Mr. Schmidt shall be entitled to receive all remuneration, benefits, awards and different entitlements beforehand granted, awarded or earned by way of to the retirement date,” reads the settlement which led to the resignation of your complete board of administrators and the retirement of Schmidt as CEO.
The settlement, signed by former Hydro One chair David Denison and Ontario Vitality Minister Greg Rickford, says as a result of Schmidt agreed to retire, he’s nonetheless entitled to pension benefits and numerous shares within the publicly-traded utility as well as to the $400,000 lump sum.
All advised, Schmidt may find yourself nearer to being Hydro One’s $10 million man, as an alternative of the $6 million man Ford labelled him as through the marketing campaign.
Opposition Chief Andrea Horwath criticized Ford’s determination, saying the compensation conflicts with the premier’s promise to save ratepayers cash.
“I believe it is clear that Mr. Ford has tried to maintain this exit in keeping with his message as opposed to what’s actually occurring,” stated Horwath advised CBC Toronto.
“On the finish of the day, that is going to come out of the pockets of ratepayers, whether or not that is companies or households.”
Ford’s workplace stated the settlement put ratepayers first and would find yourself saving them cash.
“If he had continued to function the CEO of Hydro One his stock choices would have solely expanded — and beneath this authorities’s watch, that will not occur,” his workplace stated in a press release.
Because the settlement was introduced Wednesday, shares in Hydro One have fallen on the Toronto Stock Alternate.
Actual determine unknown
Simply how a lot Schmidt may find yourself receiving is unknown.
Richard Leblanc, a professor of legislation, governance and ethics at York College, believes the overall is nearer to $eight million and an evaluation by The Globe and Mail discovered the worth of Schmidt’s present holdings at $9 million.
Leblanc says the confusion reveals that govt compensation needs to be extra clear.
“There needs to be full, true, and plain disclosure,” he stated.
“We should not want a PhD to perceive what that particular person is incomes.”
Leblanc believes Ford now has an opportunity to not solely to guarantee transparency at Hydro One, but additionally restrict govt pay.
“Ford has a chance now to put the suitable administrators into place which have sturdy business expertise, that aren’t political appointments, which have power experience and may decrease charges for ratepayers and rein in govt compensation,” he stated.