Ontario Power Generation
Compensation Governance
OPG maintains a compensation philosophy that is designed to ensure that it attracts and retains key talent in a highly specialized and technical industry that is facing increasing competition for resources. In addition, the OPG Board of Directors follows best practices when dealing with compensation. There is a 4 member Compensation and Human Resources Committee (CHRC) of the Board.
The current Committee members are former and seasoned CEO’s and Senior Executives of large, complex multi-national corporations including international nuclear companies, each of whom brings considerable financial and human resources experience to the Committee. The Committee is responsible to oversee all significant compensation matters including:
- Reviewing compensation structures, decisions, and payouts (base pay, incentive, etc), and ensuring the link between pay & performance;
- Reviewing annually and approving changes, as appropriate, to OPG compensation, including compensation principles, and objectives for total compensation, desired competitive positioning and comparator groups;
- Ensuring that executive compensation levels and performance targets are consistent with the Board’s compensation philosophy and aligned with and designed to achieve OPG’s strategic and operating objectives;
- Overseeing senior executive pay as it relates to corporate governance, including total compensation, individual contract provisions on senior executive employment offers, plus severance agreements.
The Committee reviews management recommendations and makes recommendations to the full Board for approval. The Committee meets at least 4 times per year, has full access to management and company data, and has hired an independent Compensation Advisor (Mercer). In addition, the CHRC receives independent legal advice from the law firm of Hicks Morley on employment law.
OPG continues to enhance compensation transparency by providing compensation disclosure annually through the Public Sector Salary Disclosure Act, and through the publication of the above document "Disclosure of Executive Compensation at OPG".
