The Ontario Liberals have bowed to opposition pressure and are asking Hydro One to review its high-priced executive compensation.

In separate statements released after the markets closed on Monday, Energy Minister Glenn Thibeault and Hydro One made the announcement.

Thibeault said the government “urged” the board to review changes to Hydro One’s executive compensation that he now says are “unjustifiably generous.” While, Board Chair David Densison said the government had told Hydro One it would vote against the compensation changes.

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The issue was propelled into the spotlight more than a week ago when Progressive Conservative Leader Doug Ford called on the Hydro One board and executives to resign after the Globe and Mail reported that it made firing the CEO more expensive just months ahead of the provincial election.

“This is outrageous, this is shameful, and it’s absolutely disgusting,” Ford told reporters on April 19.

CEO Mayo Schmidt’s annual compensation ballooned to $6.2 million once the power utility was privatized.

If he is fired following a change of control in the company, he would be entitled to $10.7 million severance compared to $5 million severance if his firing doesn’t follow a change in control.

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Ford’s promise to replace the Hydro One board would count as a change of control and so would entitle Schmidt to the much larger severance.

Less than two weeks ago Thibeault defended the compensation and said very little about what he knew about Hydro One’s plans. His statement released on Monday says he found out about the compensation changes with the release of the company’s management information circular on March 29.

“We believe in a stable solution that exercises our authority as the largest shareholder,” Thibeault said. “Our government continues to focus on fairness. We are urging the Board do the same when designing an executive compensation program that is fair for the people of Ontario.”

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The board says it will consult with shareholders and get “independent advice” on executive compensation, including severance provisions.

“Alignment of our compensation practices with the interests of our shareholders is a primary goal for the Board of Hydro One, and we look forward to hearing directly from our shareholders on this matter,” Denison’s statement said.

His statement is a walk-back from an op-ed published in the Globe and Mail a week ago where he said the compensation for senior executives is “appropriate for their roles in overseeing an enterprise with $25-billion of assets.”

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