July 11, 2018 - Toronto - Today, Minister of Energy, Northern Development and Mines
Greg Rickford released the following statement:
"Our government was elected on a promise to lower electricity bills for the people
of Ontario. This included a promise to address governance at Hydro One.
Today, Hydro One has informed us that Chief Executive Officer Mayo Schmidt is retiring
from the company, effective immediately.
The Board of Directors of Hydro One has also informed us of their intent to step
down from their positions through a managed process that will conclude before August
Given the critical importance of Hydro One to our province's electricity system,
our government will be closely engaging in the leadership transition at Hydro One
to ensure the stability of the system is preserved and consumers are protected.
First, we will play a key role in appointing the new Board, and will expect it to
act in the public's interest.
Second, our government has prepared legislation that, if passed, will improve transparency
and accountability at Hydro One. We will introduce this legislation during the upcoming
After years of rising electricity bills, this is a step towards our main goal—bringing
down electricity rates for all Ontarians. Help is here."
A summary of some of the key elements of the agreement.
- A managed and orderly replacement of the Board of Directors
- The entire Hydro One Board will resign and facilitate their orderly replacement
on or prior to August 15, 2018.
- Not later than August 15, 2018, the outgoing Board will, in a sequential manner,
appoint a replacement Board of Directors qualified in accordance with the Governance
Agreement to fill the vacancies created by the resignations without the need for
a Removal Notice or a Hydro One shareholders' meeting.
- The newly appointed board will hold office until the 2019 AGM.
- The appointment of a new Chair
- The newly appointed board will be responsible for appointing a new board Chair in
consultation with the Province.
- The retirement of the Chief Executive Officer
- Mr. Mayo Schmidt will retire as CEO and as a member of the board effective on July
- Mr. Schmidt and the Company have agreed to the payment of a $400,000 lump sum amount
on the effective date of his retirement in lieu of all post-retirement benefits
- Mr. Schmidt will not receive severance payment, retirement allowance or change of
- The appointment of a new Chief Executive Officer
- The replacement board will be responsible for appointing a new CEO. Paul Dobson,
Hydro One's chief financial officer, has been appointed as acting chief executive
officer until such time as the replacement board of directors, once constituted,
can appoint a new chief executive officer.
- The immediate reduction of board compensation
- The current board has volunteered and will agree to immediately reduce board compensation
to the levels contemplated by the pre-January 1, 2018 director compensation policy;
current board members have also volunteered and will agree to forego any compensation
for their service after June 30, 2018.