TORONTO

Ontario Power Generation will pay around $3.4 million to fire three executives after last year’s scathing auditor general’s report slamming the giant electricity generation utility.

John Murphy, executive v-p of strategic initiatives, Lou Pollieri, v-p assurance and chief audit executive, and chief financial officer Donn Hanbidge were fired in December after auditor Bonnie Lysyk revealed a litany of mismanagement.

Murphy, who had 33.5 years of service with OPG, was given $1.7 million in severance. Pollieri had only three years and got $265,000.

Hanbidge has yet to settle, but in a statement Friday, OPG said that based on his years of experience and contract requirements, it’s expected he will get about $1.4 million.

Hanbidge had 14 years service with the company. His contract calls for 24-months compensation.

OPG says they obtained a “third party, arm’s-length” review of the buy-out deal to ensure they were in line with labour law and employment practices.

Two of the positions have been filled on an interim basis.

Lysyk’s report documented OPG’s lavish housing and moving expenses.

In one case, an employee was paid more than $80,000 for moving 10 km from Toronto to Pickering.

She said OPG’s pension plan has hydro ratepayers paying $4 to $5 for every $1 contributed and 40 v-ps at OPG have no other job title than vice-president.