March 8, 2019 9:22 am

Ford government approves cap of $1.5M for CEO pay at Hydro One

The Ontario government has signed off on a new executive pay plan set out by Hydro One Ltd.

THE CANADIAN PRESS/Darren Calabrese
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TORONTO – The Ontario government has signed off on a new executive pay plan set out by Hydro One Ltd.

Under the proposed framework, the utility will pay its chief executive a maximum of $1.5 million a year in direct compensation, with a base salary of no more than $500,000.

READ MORE: Ontario government orders Hydro One to cap CEO pay at $1.5M

Short-term and long-term incentives are limited to $1 million.

Under legislation the government passed last year, Ontario can issue a formal, legal directive to the utility on pay.

The province had rejected an earlier plan that would have capped the CEO’s compensation at nearly $2.8 million.

READ MORE: Energy Minister and Hydro One battle over CEO compensation

Performance targets under the pay plan will include the CEO’s contributions to reductions in transmission and distribution costs.

Pay for other executives at the utility will be capped at 75 per cent of the CEO’s total direct compensation.

© 2019 The Canadian Press

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