NDP blasts possible bonus for Hydro boss

The provincial NDP is taking aim at a government-appointed board it says is discussing a CEO's bonus at a time when Manitobans are struggling to make ends meet.

The New Democrats say the board of Manitoba Hydro went behind closed doors at a July meeting to consider"year-end compensation" which the party is suggesting is abonus forCEOJay Grewal, according to board minutes obtained through freedom of information.

ThoughManitoba Hydro explained such financial incentives were already built into Grewal's contract, the NDPsays such a bonus shouldn't be considered whenhigh inflation is straining people's finances.

"With inflation being what it is, with your life getting more expensive each and every day, I don't think anyone wants to see CEOs taking home big compensation packages, big bonuses, least of all when we're talking about a company that is owned by the people of Manitoba," NDP Leader Wab Kinew said at a news conference Friday.

Grewal received a salary of $513,000 in 2021,according to Hydro's compensation disclosure report. It isn't known how much of her salary is the result of financial incentives.

Strike continues while bonus debated

At the time of thein-camera meeting to discuss Grewal's compensation, 230 of Hydro's natural gasworkerswere on strike to demand wage increases after going years without a contract, the NDP says.

Edward Kennedy, chair of Hydro's board, said in a statement that incorporatingfinancial incentives into the salary of aCEOis a "best-practice pay structure" employedby "Crown-owned utilities across Canada."

In Grewal's case, her bonuses are an accountability measure for reaching key annual goals, Kennedy said.

"It should also be noted that Ms. Grewal's base salary has not increased in the almost four years since she started at Manitoba Hydro," hesaid.

Kinew wouldn't specify whether Grewalmight deserve a bonus in the future, but said the timing isn't right"at this moment of high inflation."

He said Manitobans shook their heads when they learned ofgrocery store CEOs pocketingbonuses after the pandemic inflated their sales, whilethe salary bumps for their employees were short-lived.

"But Manitoba Hydro is supposed to be different because you, the people of Manitoba, own it," Kinew said.

"The idea that the PC's are going to make your life more expensive on your Hydro bill and allow a CEO to take a bonus is something that we think this government should answer for."

Hydro didn't answer whether Grewal would receive a bonus for 2022.

Finance Minister Cameron Friesen, the minister responsible for Manitoba Hydro, said the province doesn't have a say in the compensation ofexecutive leadership, but it is left to the utility's board of directors,"in whom we have confidence." The board's members are selected by the government.

The NDP also used the news conference Friday to blast proposed government legislationthat would cap rate hikes but also give the province a greater say in an independent body'ssetting of prices.

Kinew repeated his claim that electricity rates would increase fiveper cent annually, but that's not what the legislation says.

If the bill passes, the annual rate hike could not be higher than five per cent or the rate of inflation, whichever is lower.

The bill also requiresthePublic Utilities Board take into account the financial targets set by the province when setting rates, which, the NDPhas argued, undermines the board's independence.

The Tories have tried to wrestle with Manitoba Hydro's debt since taking office in 2016.

Twomegaprojects the Bipole III transmission line and the Keeyask generating station built under the former NDP governmentran a combined $3.7 billion over budget.