Post by CRAZY4MYKIDS on Dec 9, 2006 17:09:22 GMT -5
Hydro One boss quits, gets $3M in severance 
By ANTONELLA ARTUSO, FREE PRESS QUEEN'S PARK BUREAU
TORONTO -- Ontario's highest-paid public servant is leaving with a $3 million severance package.
Tom Parkinson, who last year made $1.56 million as the president and chief executive of Hydro One, resigned yesterday in response to a critical auditor general's report.
Energy Minister Dwight Duncan said it was clear Hydro One needed a "culture" change following a report by Auditor Jim McCarter that said rules weren't followed in the acquisition of millions of dollars in goods and services.
The minister said he approached the Hydro One board of directors.
Duncan sought a solution from the board to the problems identified in the report.
"I believe Mr. Parkinson's departure is in the best interest of Ontario ratepayers, Hydro One and its employees," he said.
Duncan said he was advised that providing Parkinson with his full severance was the least-costly resolution.
The previous chief executive of Hydro One, Eleanor Clitheroe, is still in court following her dismissal for allegedly filing inappropriate expenses.
Hydro One chairperson Rita Burak issued a statement yesterday that praised Parkinson's "substantial achievements" with the company, making it clear the board was reluctant to let him go.
"The board of Hydro One has unanimously resolved our full and ongoing confidence in Tom Parkinson to continue as president and CEO of Hydro One," the statement says. "However, in consultation with Tom and in light of the circumstances, we have decided with deep regret to accept Tom's resignation."
NDP Leader Howard Hampton said the board's continuing support of Parkinson proves more needs to be done to clean house in the electricity sector.
Ontario electricity organizations such as Hydro One, Ontario Power Generation and the Ontario Power Authority pay executive salaries that are "out of whack" with the far more modest compensation offered comparable positions in other provinces.
Ontario Power Generation revealed yesterday its president and chief executive, Jim Hankinson, makes $830,000 a year and is entitled to a 100-per-cent bonus if he meets targets set by the OPG board.
"This is just the tip of the iceberg," said Hampton, who called for a public inquiry.
Conservative Leader John Tory complained that lack of respect for taxpayers' money is a "systemic" problem in the Dalton McGuinty government.
"In the case of Hydro One, if Mr. Parkinson really quit, he should not get severance," Tory said. "In Northern Ontario, where high hydro rates were a big contributor to thousands of people losing their jobs, they're not getting severance like this."
Under Parkinson's leadership, Hydro One doubled its profits and boosted its credit rating several times.
However, Parkinson's substantial salary and perks drew negative attention to the compensation packages of electricity brass.
Duncan did not criticize the salaries yesterday, saying he was motivated to act by the auditor's report.
The report highlighted the case of one senior executive, later identified as Parkinson, who approved his own expenses after they were put on his secretary's charge card.
"Hydro One's policies require that the executive's superior approve the expenses," the report says. "This practice also exempts these expenditures from an annual review of senior executive expenses conducted by the corporation's external auditor."
During 2005, Hydro One purchased $127 million worth of goods and services on corporate charge cards.
Auditors found cases in which the documentation was insufficient to determine what was purchased and cases in which employees had not detailed the use of cash advances.
Hydro One general council Laura Formusa will serve as the president until a full-time replacement can be found, likely in three to six months.
By ANTONELLA ARTUSO, FREE PRESS QUEEN'S PARK BUREAU
TORONTO -- Ontario's highest-paid public servant is leaving with a $3 million severance package.
Tom Parkinson, who last year made $1.56 million as the president and chief executive of Hydro One, resigned yesterday in response to a critical auditor general's report.
Energy Minister Dwight Duncan said it was clear Hydro One needed a "culture" change following a report by Auditor Jim McCarter that said rules weren't followed in the acquisition of millions of dollars in goods and services.
The minister said he approached the Hydro One board of directors.
Duncan sought a solution from the board to the problems identified in the report.
"I believe Mr. Parkinson's departure is in the best interest of Ontario ratepayers, Hydro One and its employees," he said.
Duncan said he was advised that providing Parkinson with his full severance was the least-costly resolution.
The previous chief executive of Hydro One, Eleanor Clitheroe, is still in court following her dismissal for allegedly filing inappropriate expenses.
Hydro One chairperson Rita Burak issued a statement yesterday that praised Parkinson's "substantial achievements" with the company, making it clear the board was reluctant to let him go.
"The board of Hydro One has unanimously resolved our full and ongoing confidence in Tom Parkinson to continue as president and CEO of Hydro One," the statement says. "However, in consultation with Tom and in light of the circumstances, we have decided with deep regret to accept Tom's resignation."
NDP Leader Howard Hampton said the board's continuing support of Parkinson proves more needs to be done to clean house in the electricity sector.
Ontario electricity organizations such as Hydro One, Ontario Power Generation and the Ontario Power Authority pay executive salaries that are "out of whack" with the far more modest compensation offered comparable positions in other provinces.
Ontario Power Generation revealed yesterday its president and chief executive, Jim Hankinson, makes $830,000 a year and is entitled to a 100-per-cent bonus if he meets targets set by the OPG board.
"This is just the tip of the iceberg," said Hampton, who called for a public inquiry.
Conservative Leader John Tory complained that lack of respect for taxpayers' money is a "systemic" problem in the Dalton McGuinty government.
"In the case of Hydro One, if Mr. Parkinson really quit, he should not get severance," Tory said. "In Northern Ontario, where high hydro rates were a big contributor to thousands of people losing their jobs, they're not getting severance like this."
Under Parkinson's leadership, Hydro One doubled its profits and boosted its credit rating several times.
However, Parkinson's substantial salary and perks drew negative attention to the compensation packages of electricity brass.
Duncan did not criticize the salaries yesterday, saying he was motivated to act by the auditor's report.
The report highlighted the case of one senior executive, later identified as Parkinson, who approved his own expenses after they were put on his secretary's charge card.
"Hydro One's policies require that the executive's superior approve the expenses," the report says. "This practice also exempts these expenditures from an annual review of senior executive expenses conducted by the corporation's external auditor."
During 2005, Hydro One purchased $127 million worth of goods and services on corporate charge cards.
Auditors found cases in which the documentation was insufficient to determine what was purchased and cases in which employees had not detailed the use of cash advances.
Hydro One general council Laura Formusa will serve as the president until a full-time replacement can be found, likely in three to six months.