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The CEO of Hydro One is retiring as part of an agreement between the Ontario government and the utility company which will also see the replacement of all board members.
Prime Minister Doug Ford has promised to dismiss Mayo Schmidt's chief executive during the campaign, repeatedly calling him "the $ 6 million man" from the former prime minister Kathleen Wynne for her annual salary and bonuses. The Liberal government of 2015 was a hot topic during the recent election campaign in Ontario, where millions of residents were outraged by rising electricity bills.
Ford's campaign focused on executive compensation.
Hydro One announced the departure of Schmidt, with immediate effect, in a press release issued Wednesday. Moments later, Ford said the news was a good day for the province
Mayo Schmidt, CEO of Hydro One, retired as part of an agreement between the government of the United States. Ontario and the utility company. 19659008] "I said we were going to do that, and we did," Ford told reporters at Queen's Park.
Ford stated that Schmidt was getting "zero separation" as part of the deal. However, Schmidt will receive a $ 400,000 payment in lieu of retirement benefits and benefits, according to Hydro One.
According to the annual report of shareholders published on March 29, Schmidt, who earned $ 6.2 million last year, be entitled to severance pay of $ 10.7 million when he was to be removed from office by the board of directors. When the reporters asked Ford why Schmidt would not pursue this, Ford replied that they themselves should ask the ex-CEO himself.
& # 39; Relief to the people & # 39;
Prime Minister also said the move is paving the way However, Ford has refused to explain how this would happen when journalists press it. [Traduction] [TRADUCTION] "As safe as I am here, these bills will go down by 12 per cent," said Ford.
"We will help Ontarians."
Previously Hydro representatives indicated that only a few cents of each household's electricity bills are spent on executive compensation.
Hydro One has indicated that a new board of directors will select the next CEO of the company. (Darren Calabrese / Canadian Press)
Hydro One announces that a new board of directors – four of which will be appointed by the province – will select the next chief executive officer of the company, and that the province will be consulted
Paul Dobson, Chief Financial Officer of Hydro One, will act as Interim Chief Executive Officer.
Greg Rickford, the new energy minister, said the government would play an important role in restructuring Hydro One 's board of directors.
Rickford said the government will also introduce legislation to improve transparency at Hydro One.
"After years of increasing electricity bills, this is a step towards our main goal – lowering electricity rates. David Denison, outgoing chairman of Hydro One's board of directors, said the deal would bring "stability and clarity" to the public service management, and he congratulated Mr. Schmidt for his leadership.
Schmidt "has demonstrated strong and effective leadership throughout his tenure as CEO by guiding the transformation of Hydro One into a publicly traded company," he said.
NDP energy critic Peter Tabuns said that Schmidt 's departure raises a number of questions and asked the government to disclose the specific details of the issue. agreement with him.
"Doug Ford needs to tell people what kind of backroom deal he has worked with Mayo Schmidt to get him off, and he's going to replace the board with his own high-priced insiders, "said Tabuns in a statement.
Paid by shareholders
Hydro One was partially privatized in November 2015, with the Liberal government stating that it planned to use the sale of shares to fund public transit and transportation projects. 39; infrastructure. By December 2017, the province had sold 53% of its stake in the company.
The decision has been the subject of much criticism, particularly from the province's tax watchdog that said earlier this year that a billion if the government had incurred a traditional debt for finance infrastructure projects instead of partially privatizing Hydro One, which has badets of more than $ 25 billion and annual revenues of nearly $ 6 billion.
During the election campaign, Hydro One, Ontario's largest provider of transmission and distribution of electricity, pointed out that taxpayers were not paying a majority of Schmidt's salary
. compensation, "said the company in a statement in April." That's why we decided earlier this year that customers will only pay the CEO's salary as it was at [initial public offering]. "
Hydro One customers pay only two cents on their monthly bill for CEO compensation.The company added that nearly 80 percent of total executive compensation is paid by shareholders
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