When Doug Ford came to power, he promised to run Ontario like a business and cut outrageous costs. As an illustration of his philosophy, he vowed to fire Mayo Schmidt -- Hydro One's CEO -- who Ford labelled "the six million dollar man." One of the first things Ford did when he assumed office was show Schmidt the door. But, Martin Regg Cohn writes, there were financial consequences that accompanied Schmidt's departure:
First, Schmidt walked away with a handsome $10.7 million in severance and stock options, despite the premier’s assurances that it would be essentially costless.
Second, Ford’s intervention caused catastrophic harm to the utility’s takeover of U.S.-based Avista Corp., because local state regulators concluded that the Ontario government was calling the shots rather than Hydro One management. When they overruled the transaction, it triggered a “kill fee” that cost Hydro One about $139 million, on top of Schmidt’s severance.
Add it all up: Ford upbraided the Six Million Dollar Man but upgraded him to the One Hundred Fifty Million Dollar Man — or a $150 million mess.
Third, Ford’s intervention paralyzed management and divided the board in the aftermath. The only way to fire the CEO was to dump Hydro One’s directors (the board instead offered to resign in a seamless transition).
Besides his promise to fire Schmidt, Ford declared that Ontario was "Open For Business." Sounds a little like the story of the businessman who became president of the United States -- and declared bankruptcy six times before he got there.
Image: TVO
8 comments:
At least thus far, we don't hear the tale of Laura Secord fighting off the Yanks in an Avro Arrow. Otherwise, all the same stupid crap.
It's remarkable, Danneau, how similar the narratives of both men are.
These self-proclaimed titans will be the ruin of all of us, Owen, but their supporters will continue to be blinded by the empty rhetoric they so regularly spout.
Ford's base doesn't care about the wasted money. For the little guy, this was all about pwning the libs. For the real base of the party, this was about rewarding well-healed Cons with patronage appointments. Wynne-win as far as Ford's concerned.
Cap
Their supporters continue to leave me flummoxed, Lorne. These are obviously con men. But all kinds of people continue to buy what they're selling.
I suspect you're right, Cap. When you get down to cases, Ford and his followers are all about revenge.
Wasn't there a movie once called "Revenge of the Nerds" Owen? The Canadian province whose land mass goes further into the US than any other province (at least according to my maps of Canada). Perhaps they've been vaccinated with the wrong needle? or at least there was some sort of virus escaped into Ontario when no one was looking?
They say that a lot of stuff comes in over the Ambassador Bridge between Detriot and Windsor, Lulymay. Perhaps that's how the virus got here.
Post a Comment