NB Power

Statement about executive salaries (09/10/23)

NB 1663

Oct. 23, 2009

FREDERICTON (CNB) - The provincial government today released its 2008-09 Public Accounts, which summarizes the salaries for all provincial government employees for the 2008 calendar year.

"Executive compensation is set by the board of directors, and is based on a compensation structure that was developed with the input of outside professionals and reflects best practices applied throughout the industry," said Ed Barrett, chair of the Human Resources, Governance and Nominating Committee. "The board renewed David Hay's contract on March 19, 2009."

Barrett said that it is important to clarify the information provided in the 2008-09 Public Accounts. Hay's salary for the 2008 calendar year was not between $550,000 and $574,999, but was $360,571. There were other one-time payments made during that period: a performance bonus and salary adjustment.

A performance bonus can only be paid after the period for which it applies is complete, to enable the board to evaluate past performance compared to the set targets. As a result, Hay was paid a performance bonus of $96,562 in 2008 for meeting his performance targets for fiscal year 2007-08.

Executive compensation adjustments for two years prior to the calendar year 2008 had been put on hold pending a board review of executive compensation. This review was undertaken with an external compensation specialist, who used industry comparative factors and best practices. Therefore, a one-time adjustment to cover the years 2006 and 2007 was made to move salaries slightly closer to industry standards. This adjustment of $111,733 was paid in 2008.

For the current fiscal year 2009-10, all executive salaries are subject to the salary freeze announced by the province earlier this year. In accordance with the board statement of Dec. 12, 2008, there were no bonuses paid in 2009 for the fiscal year ended 2008-09.

09/10/23

MEDIA CONTACT: Heather MacLean, manager, media relations 506-458-6618, e-mail: hemaclean@nbpower.com.

09/10/23