Hydro One CEO Mayo Schmidt, is pictured in March 12, 2008 when he was president and CEO of Viterra, THE CANADIAN PRESS/John Woods

TORONTO — Embattled Hydro One CEO Mayo Schmidt is retiring immediately, and its board is resigning.

Ontario Premier Doug Ford, who turned Schmidt and his $6.2-million salary into a political football during the provincial election campaign, announced the news on Wednesday after the markets closed.

“I’m happy to say today the CEO and the board of Hydro One — they’re gone, they’re done. They’re done, we’re going to turn a new corner, we’re going to make sure we keep with our promise of reducing hydro rates by 12 per cent,” Ford said.

It was the premier’s first time speaking with reporters since June 29.

[READ MORE: Hydro One calls exec pay ‘appropriate,’ Ford says it’s ‘gouging’]

Before the election and throughout the campaign Ford called on Schmidt and the Hydro One board to resign or face firing if he came to office. Less than two week’s into governing, a press release from the company says it approached the new government to arrange for an “orderly replacement ” of the CEO and board.

“This is a promise that we kept for the people,” Ford said. He told reporters the change in leadership would help bring down hydro rates by “having a new board, new CEO, blazing a new trail and Hydro One setting a new mentality right across the board.”

“As sure as I’m standing here, those bills are going to come down 12 per cent,” he said.

Schmidt was entitled to a $10.7 million severance if he was fired following a change in control at the company, but his decision to retire leaves him with a $400,000 lump sum payment and any other compensation that applies through the company’s retirement policies.

Ford did not answer questions about how much that compensation would be and he didn’t explain how the $400,000 was negotiated.

After Hydro One was privatized by the former Liberal government, Schmidt’s salary dramatically increased by 38 per cent between 2016 and 2017.

In the months before the election, Hydro One’s board ensured Schmidt would get millions more on his way out the door if he’s ever fired following a change in control at the company. Ford’s campaign pledge to fire the board is one such example of a change in control.

In a press release, Hydro One says it has “agreed to consult with the Province in respect of future matters of executive compensation.” Ford did not answer a question on what the future compensation should be. In the past the Tories have referenced the much lower pay enjoyed by CEOs at government-owned companies like Hydro Quebec.

“We believe that the agreement we have reached with the Province of Ontario, which provides for an orderly transition of the board of directors and CEO succession, is in the best interests of Hydro One and its various stakeholders and provides stability and clarity to Hydro One’s governance and management structure going forward,” outgoing Hydro One board chair David Denison said in a press release.

Hydro One’s CFO Paul Dobson will be acting CEO until a replacement is found. The government will appoint four of the 10 board members to replace the existing board, a committee of the company’s largest shareholders (other than the province) will choose the remaining six board members.

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