Hydro One’s CEO is “retiring” as part of an agreement between the Ontario government and the utility company. That agreement will also see the replacement of the entire board.
Hydro One announced Schmidt’s departure in a Wednesday news release:
“I would like to express thanks on behalf of the entire board of directors and the employees of Hydro One to Mayo Schmidt for his many contributions to the Company. He has exhibited strong and effective leadership throughout his tenure as CEO in guiding the transformation of Hydro One to a publicly traded company,” said David Denison, Chair of Hydro One.
“We believe that the agreement we have reached with the Province of Ontario, which provides for an orderly transition of the board of directors and CEO succession, is in the best interests of Hydro One and its various stakeholders and provides stability and clarity to Hydro One’s governance and management structure going forward,” added Denison.
Hydro One has committed to completing the transition to a new board of directors by August 15th. In connection with Mr. Schmidt’s retirement, he will not be entitled to severance, but will receive amounts consistent with Hydro One’s retirement policies, and his employment agreement. He receive a $400,000 lump sum payment in lieu of all post-retirement benefits and allowances.
A copy of the agreement with the Province will be filed on SEDAR.
Doug Ford said the news marks a great day for the province.
“I said that we were going to do this, and we did it,” Ford said from Queen’s Park.
The premier also said the move paves the way for a 12 per cent reduction in hydro rates, but declined to explain how that would come about. Hydro officials hav previously stated that only a few cents of each household’s hydro bill goes toward “executive pay”.
Hydro One said a new board of directors — four members of which will be nominated by the province — will select the company’s next CEO, and the province will be consulted on the next leader’s compensation.
Hydro One’s chief financial officer Paul Dobson will serve as acting CEO.