(TORONTO, ON) – Hydro One, Ontario’s largest electricity transmission and distribution company, has announced that an agreement with the Province of Ontario for the complete replacement of the board of directors and the retirement of Mayo Schmidt as the chief executive officer, effective yesterday. The removal of the board members and the CEO was an election promise by the newly elected Ford government.
- The current governance agreement allows the government to remove the entire board of directors and each of the directors of Hydro One will resign and be replaced by new nominees.
- The new board will consist of 10 members to start. The governance agreement allows the province to nominate four directors with the remaining six nominees selected by a nominating committee which will be made up of representatives of Hydro One’s largest shareholders other than the province.
- The new board will be responsible for appointing a new chief executive officer, who will be appointed as the eleventh member of the new board.
- Hydro One is required to consult with the government regarding executive compensation.
- The new directors will serve until Hydro One’s next annual meeting or until they otherwise cease to hold office.
Paul Dobson, Hydro One’s chief financial officer, was appointed as the acting CEO until the new board is able to identify a proper replacement.
The completion date for the transition process is estimated to be August 15.
In connection with Schmidt’s retirement, he will receive a buy out in accordance to his employment contract. He is not entitled to severance pay. Schmidt will receive a $400,000 lump sum payment in lieu of all post-retirement benefits and allowances.