Article content continued

Subsequently, the Globe and Mail revealed Schmidt will retain Hydro One stock valued at up to $9 million, plus an annual pension and other benefits, that will bring him close to the $10.7 million he would have received in severance.

That said, the deal itself is sensible and defendable.

Schmidt is getting money and benefits already owed to him, provided for in his contract with Hydro One for 2016, 2017 and the portion of 2018 when former premier Kathleen Wynne and the Liberals were 47% owners of the utility.

Thus, Ford is simply cleaning up a mess handed to him by the Liberals.

By Schmidt agreeing to retire, and as part of the overall deal negotiated with Hydro One, there will be an orderly transition of power to a new CEO and board of directors (10 instead of the current 14) more in line with Ford’s goals of streamlining government, fiscal restraint and lower executive salaries.

This as opposed to a protracted fight over Schmidt’s severance pay which would have created further uncertainty and damaged Hydro One’s stock price far more than it has been by the mini-flap over Schmidt’s retirement.

Also, with Schmidt retiring, Hydro One avoids having to pay out severance deals to several other senior executives at the utility, who had similar provisions in their contracts, which in total would have exceeded Schmidt’s settlement.



Finally, the current board of directors has agreed to retroactively roll back their salaries to Jan. 1, 2018, prior to the controversial, retroactive raises they recently voted for themselves, and will receive no further pay as of June 30, while co-operating with the Ford government to install the new board of directors by August 15.