Hydro One unveiled a revised executive compensation plan on Friday, with a seal of approval from the Ontario government.
Under the revised framework, the maximum direct compensation for the company’s chief executive will be $1.5 million, with a maximum base salary of $500,000. Performance targets will include the CEO’s role in reducing transmission and distribution costs.
"Hydro One's compliance with this directive allows us to move forward as a province,” Ontario Energy Minister Greg Rickford said in a statement. “It sets the company on the right course for the future, proving that it can operate as a top-class electricity utility while reining in executive compensation and increasing public transparency.”
Rickford issued a formal directive last month compelling Hydro One to set the CEO's base salary no higher than $500,000 with a maximum of $1 million in incentives.
The company had previously refused repeated requests to slash the CEO pay below $2,775,000.
Doug Ford’s PC government made noise last year in its election campaign against Hydro One executive salaries, dubbing then-CEO Mayo Schmidt the "six-million-dollar man." Shortly after they were elected, the PCs forced Schmidt's resignation.
The Ontario utility said Friday it will continue the search for a full-time CEO to replace interim chief executive and president Paul Dobson.