Enmax CEO paid $2.7M in 2009

Enmax CEO Gary Holden is among the highest paid heads of any publicly owned company or government agency in Alberta, the CBC has learned.

Perquisites include car and driver, parties with rock stars

CBC News Posted: Oct 12, 2010 8:04 AM EDT | Last Updated: October 12, 2010

Enmax CEO Gary Holden earned $2.7 million in base pay and bonuses in 2009, CBC News has learned. ((CBC))

Enmax CEO Gary Holden is among the highest paid heads of any publicly owned company or government agency in Alberta, the CBC has learned.

Not only does he earn a hefty paycheque $2.4 million in 2008 and $2.7 million last year, including base pay and bonuses the head of thepower utility owned by the City of Calgary also receives perquisites and benefits that might surprise taxpayers.

While the city can't offer the stock options other energy executives receive, Holden was given a company car and driver last year to get him to and from work, meetings and other events.

Holdenhas also had rock stars, including Tom Cochrane and Tragically Hip singer Gord Downie, come to his home just outside of Calgary to play at business parties at Enmax's expense.

Holden,who has led the firm since 2005,was not available to comment last week, but the chair of the Enmax board, Cliff Fryers, said Holden's compensation is set by the board in line with the CEOs of other major energy companies.

Holden worth it: Fryers

In fact, Fryers said,Holden isgood value, as would become apparent if he ever left the company.

"We would immediately have to go out and find another executive who could compete with the players, and we would probably have to pay more money,"Fryers said.

Many companies entertain to promote their products,Fryers said, andin this case,the party Holden held was tohighlight the solar panels and micro-power generators that have been installed athis home.

"Webelieve that this was the right thing for him to do, to invite people to his home, show them everything he's done and explain everything we are about to do," Fryers said. "It's been very successful."

Enmax earnings have levelled off in recent years, and bond-rating agencies have noticed.

Fryerssaid the company is fully behind Holden's leadership and vision for the utility.

Ald. Gord Lowe,a member of the Enmax board, agrees with that assessment.

"I would say that we're extremely fortunate to have him for what we've paid him," Lowe said.

Much of Holden's compensation is short-term and long-term bonuses paid for accomplishing personal and corporate goals. His base pay is $700,000, making him the highest-paid head of any publicly owned company or government agencyin the province.

Some industry critics question the glowing assessments, noting Enmax has been downgraded by bond-rating agencies,its earnings have levelled offand its debt has tripled to more than $1.3 billion in the past three years.

How does Enmax set compensation?

According to board chair Cliff Fryers,Enmax createswhat it calls a "comparitor" group, a list of what the top people atenergy companies such as TransAlta, Atco Power, Epcor earn.

CBC News was not given full access to that list, but according toinformation available on the TransAlta website, TransAlta president and CEO Stephen G. Snyder received $4.7 million in total compensation last year.

Former president and CEO of Ontario Power Generation Jim Hankinson was paid $2.1 million last year, according to salary information available on government of Ontario websites.

Why does Holden get a companycar and driver?

According to Fryers, the car service was started on a trial basis during the Stampede last year to help Holdenget to all the functions he was expected to attend.The perquisite which Fryers said was Enmax'sidea, not Holden's was allowed to continue becauseit allows Holden to work more. He uses it to get from his home on the western outskirts of Calgary to Enmax and back but also around town as required.

Mayoral candidate Bob Hawkesworth, who was on Enmax's board until last May, told CBC News he didn't know Enmax was paying forthe car and driver.

"I don't think it's appropriate, but that wasn't reported to me as a board member," he said.

How muchdid the private parties at Holden's home cost?

In December 2008, Tom Cochrane performed in Holden's basement for about 100 people. Cochrane also played at the Enmax company Christmas party that year, and the private performance at Holden's house was part of that contract. Sources inside Enmax have told CBC News Cochrane's fee was about $100,000 for the two shows,not includingthe cost of bar and food service. It's not clear how the show at Holden's house benefited Enmax.

There was another private performance at Holden's house in March 2009 where Gord Downie of the Tragically Hip played severalsongs. The event was held just ahead of an industry conference, so the approximately 200 guests includedan industry who's who as well asprovincial cabinet ministers, members of city council and other invited guests, all at Enmax's expense.

Fryers defended the events, which he said promoted the company by showcasing the kinds of energy projects Enmax is doing.

What is city council's role in the firm's operations?

There are two aldermen on the board to provide political oversight to the firm's operations, while the boarditself is concerned with thelong-term direction of the company. Until recently, thecity representatives wereGord Lowe and Bob Hawkesworth, although Hawkesworth hasbeen replaced by Ald. Brian Pincott.

Corrections

An earlier version of this story erroneously reported that Jim Hankinson is the former president and CEO of TransAlta. In fact, Hankinson is the former president and CEO of Ontario Power Generation. The earlier version also mistakenly attributed Hankinson's salary for 2009, $2.1 million, to current president and CEO of Ontario Power Generation Tom Mitchell.
Oct 12, 2010 1:56 AM MT

With files from the CBC's Scott Dippel

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