Implementation Will Begin With New CEO Of Hydro One
QUEEN'S PARK, June 27 /CNW/ - Energy Minister Dwight Duncan announced
today that the government is accepting all the recommendations of the Agency
Review Panel. The panel has recommended significant changes to the way
executive compensation will be determined at Ontario's five electricity sector
Some of the key recommendations of the Agency Review Panel include:
- Compensation that reflects the mixed commercial and public interest
nature of jobs at these agencies.
- Using a more appropriate model for setting executive compensation
that will result in reduced compensation for top executives at
Ontario Power Generation and Hydro One in the order of 25-30%.
- Setting Ontario Energy Board executive salaries at a rate similar to
other Ontario regulatory organizations.
- Further enhancing the executive salary disclosure system to make it
more accessible and transparent by including the rationale for
executive compensation decisions.
- Discouraging the use of "perks" to executives.
"I want to thank the members of the panel for their hard work in
developing these prudent and responsible recommendations," said Minister
Duncan. "We want to ensure that compensation for top executives at Ontario's
energy agencies strikes a balance of being competitive and responsible to the
Ontario ratepayers whom these public institutions serve."
The Minister has written to the chairs of each electricity agency
directing implementation of the panel's recommendations. Hydro One will now
proceed to select a new CEO using the panel's report for determining
The panel's report builds on the McGuinty government's commitment to
implement transparency across government institutions. Other measures have
included enhancing the role of the Auditor General to provide oversight over
broader public sector institutions, and requiring that all salaries in the
broader public sector are included in the annual Public Sector Salary
The Agency Review Panel was established on January 29, 2007 under the
Ministry of Energy Act. The panel members include: James Arnett, former
Education Minister Dave Cooke, former Attorney-General Charles Harnick Q.C.,
and Dr. Sharon Manson Singer. The panel will be continuing its work towards a
second report, addressing the roles and relationships and human
resource-related issues for Ontario's electricity agencies.
A copy of the report and the Agency Review Panel's Terms of Reference are
posted on the Ministry of Energy's website at www.energy.gov.on.ca.
Disponible en français.
For further information:
For further information: Steve Erwin, Minister's Office, (416) 327-3546;
Sylvia Kovesfalvi, Communications Branch, (416) 327-4334