Hydro One’s CEO is retiring as part of an agreement between the Ontario government and the utility company that will also see the replacement of the entire board.
Premier Doug Ford vowed to fire Mayo Schmidt during the campaign, repeatedly calling him ex-premier Kathleen Wynne’s $6-million man for his annual salary and bonuses.
Hydro One announced Schmidt’s departure in a Wednesday news release. 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 told reporters at Queen’s Park.
Ford said Schmidt is getting “zero severance” as part of the deal. However, Schmidt will receive a $400,000 payout in lieu of post-retirement benefits and allowances, Hydro One said.
The premier also said the move paves the way for a 12 per cent reduction in hydro rates, although Ford declined to explain how that would happen when pressed by reporters.
Previously, Hydro officials said only a few cents of each household’s hydro bills go 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.
Paul Dobson, Hydro One’s chief financial officer, will serve as acting CEO.