The province is giving the all clear to as much as $8 million in proposed pay hikes for 80 executives at Ontario Power Generation by the end of the decade. This includes up to $3.8 million a year for its chief executive.
Just days after the government sent community colleges back to the drawing board on their plans to raise presidents’ salaries as much as 50 per cent, Energy Minister Glen Thibeault’s office said pay hikes at OPG can be justified.
It’s crucial to retain and attract top international talent to bring the $12.8-billion refurbishment of the Darlington nuclear power plant near Oshawa in on time and on budget.
“The safe operation of Ontario’s Onwin large nuclear generating stations requires technical experts of the highest standard,” Thibeault’s office said in a statement Tuesday.
“Ontario Power Generation is the only public sector organization in Canada that requires the commercial and technical expertise necessary to safely operate nuclear power stations.”
Chief executive Jeffrey Lyash now makes $1.5 million a year, equally divided between salary and incentive pay, and there are no plans to change that pay package for the next three years, said OPG spokesman Neal Kelly.
“He will stay under his existing contract unless the board decides to make a change,” said Kelly, noting it’s unlikely the chief executive would see pay rise to the maximum because the target is being set at a lower level.
Otherwise, “executives are now eligible for merit raises based on performance,” he added.
Thibeault has been tasked by Premier Kathleen Wynne with taking cost pressures out of the electricity system in the wake of soaring hydro prices.
The possible raises at OPG and for another 344 employers in the broader public sector, including some at transit agency Metrolinx, the LCBO, hospitals and school boards, are being contemplated as government-ordered pay freezes for non-unionized staff come to an end.
Under guidelines that took effect last fall, employers in the broader public sector must establish salary comparators at similar organizations and come up with executive compensation programs for public comment by September, and these must include minimums and maximums.
Metrolinx, for example, has set a range of $375,300 to $479,500 for its chief executive in a draft proposal now on the agency’s web site.
CEO Bruce McCuaig now makes $361,114.66 a year.
This means he could be in for a raise of up to $118,000.
“This isn’t final,” said spokeswoman Anne Marie Aikins, noting the draft is subject to change after public comments are taken into account. “It’s up to the board of directors if any executives get raises.”
The NDP is crying foul on proposed raises after years of calling for firm caps on compensation for public-sector executives.
“When out-of-control hydro costs are crushing hard-working families, it’s a slap in the face to hear that the CEO of Ontario Power Generation could be eligible for a salary of up to $3.8 million,” New Democrat MPP John Vanthof said in a statement.
“Most Ontarians haven’t seen a real increase in pay in years, despite soaring utility and housing costs. It just isn’t fair for the executives of our public utilities and institutions to be raking in huge salaries, raises, and bonuses, while so many Ontarians are struggling to put food on the table.”
Last week, Deputy Premier Deb Matthews said plans by some of Ontario’s colleges to boost presidential pay up to 50 per cent were “unacceptable.”
Matthews added she needed to “send a signal,” because the government needs to keep spending under control as the government is expected to balance the budget in the coming fiscal year after many years of deficits.
On Wednesday, the Progressive Conservatives said they would like to see a more open process when it comes to setting salaries.
“Kathleen Wynne has allowed egregious public sector pay hike discussions, showing exactly how out of touch she and her Liberal government have become,” MPP Michael Harris (Kitchener-Conestoga) told reporters at Queen’s Park.
If elected in 2018, Harris said his party would launch its own review “on how decisions surrounding public sector executive compensation are made … our review would allow for transparency” and ensure Ontarians “that this process is done in a more public and transparent way.”
With files from Kristin Rushowy
With files from Kristin Rushowy
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