Scandal and Firing Over Executive Pay and Benefits At Hydro One
Clitheroe's position as president and CEO abruptly ended with firing, after a scandal over excessive executive pay (hers rose from $500,000 to $2.1 M annually) and inappropriate benefits, that included government limousines ferrying her children to school each day, during her tenure, at a time when Hydro ONE was struggling to supply electrical power and remain solvent. In 2001, her last full year of work at Hydro One, she took home more than $2.2 million, including $174,000 for a car and $172,000 for vacations.
In 2002 she was named Business Woman of the Year by the National Post. As the dust settled around Ontario Hydro's corporate meltdown, some reflection on the complex politics and management at the hands of changing policies and governments has been used to temper the vilification of politically appointed executives, who find themselves over their heads in the midst of scandal on self-directed very high executive pay with extraordinary benefits, frivolous corporate expenditure and insolvency, and betrayal of public interest with failure of service.
Clitheroe filed a lawsuit against the utility for increased severance and pension compensation after legislation was passed by the Conservative government cancelling pension increases. The lawsuit was not without its ridiculous moment when the Anglican Bishop of Niagara wrote to the Court to support the claim that Clitheroe was 'in need'. This lawsuit was dismissed by the Ontario Superior Court on June 26, 2009 saying, "In short, the Legislature within its jurisdiction can do everything that is not naturally impossible,and is restrained by no rule human or divine...prohibition "Thou shalt not steal," has no legal force upon the sovereign body and there would be no necessity for compensation to be given. Her further appeal to the Supreme Court of Canada was dismissed with costs in 2010.
Read more about this topic: Eleanor Clitheroe-Bell
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