Enmax reports nearly $6M made by top 7 execs

Enmax Corp. has released a report detailing the compensation provided to senior executives.

It shows CEO Gary Holden made $2.4 million last year, not the $2.7 million the city-owned utility stated two months ago.

There was no explanation provided for the discrepancy.

Board chairman Cliff Fryers said Holden has presided over strong growth of the company and he's worth every penny.

"We look at the question of the competence of the CEO, what it takes to keep him, how he's done relative to the competition and what [a] success he's been, and we compensate him," said Fryers. "It's a simple as that."

The report, titled How We Govern, shows that the top seven Enmax executives collectively earned nearly $6 million last year.

It also shows that Enmax has given signing bonuses to new executives, some which were as high as a quarter of a million dollars for joining the company.

Fryers said a lot of the issues that have come out in the last couple of months are related to Enmax's competitors, which he claimed are jealous of his company's success.

He said the board of directors stands behind the CEO, but he understands the public concern about what's going on at Enmax.

Fryers also apologized for mistakes made at the utility, but again provided no details about what he was apologizing for.

Calgary Mayor Naheed Nenshi spoke to the media hours later, saying he was pleased Enmax made its top salaries public.

He said he looked at the report and there were three issues the city needed to examine.

He questioned whether the methodology of setting executive and board compensation by the use of peer groups was the right way to go. He also questioned whether Enmax has been using the right peer groups for this purpose.

"And then No. 3, the one that many Calgarians are asking, is that regardless of the methodology, do we in fact have the right levels of compensation for the executive and the board?" Nenshi asked.

He also said one of the problems with the use of peer groups was the creation of an "arms race."

"Company A compares to Company B. Company B increases its salary, but Company B is also Company A's comparator. So you end up having this escalation," Nenshi said. "And to me … it seems we are divorcing compensation from the actual value that's provided."

Nenshi said there's a governance problem at the utility and council needs to examine that — likely in a strategic review next year.