Former Enmax CEO gets $4.6M in severance

Former Enmax CEO Gary Holden will receive more than $4.6 million in severance pay.

The city-owned utility made the announcement Friday afternoon.

Holden stepped down on Jan. 21, hours after CBC News reported on a trip he took to Monaco in 2008 that was provided by a German software company Enmax does business with.

Thatfollowed other revelations about his salary, perks and company parties he hosted at his house featuring Canadian rock stars.

Enmax said the amount paid out $4,629,333 was consistent with his employment agreement.

"The lawyers looked at all of this and it was certainly done in the proper way to make sure contracts were followed and met," said Ald. Brian Pincott, who sits on the Enmax board of directors. "It's a lot of money, no question."

Original contract is the issue: Nenshi

Mayor Naheed Nenshi issued a statement shortly after news of the severance was made public. In it, he affirmed that the decision about the amount of severance was made by the Enmax board of directors in accordance with its contractual obligations under Holden's employment agreement.

Nenshi said the issue is whether or not the negotiated contract was appropriate in the first place.

"City council will be meeting with the Enmax board of directors this month. Executive and board compensation, along with Enmax's governance practices, will be at the top of the agenda," he said.

'If there's ever a message that's the wrong one to send, this is it.' Ric McIver, former alderman

"Your city council sees fixing the governance of Enmax as a major priority, and we are working to do so in the best interests of Calgarians."

The funds won't diminish the 2011 annual dividend paid to the city, Enmax said in a news release.

But Scott Hennig, Alberta director of the Canadian Taxpayers Federation, said that indicates that taxpayers haven't been getting a high enough dividend from Enmax, if the utility can "simply remove $5 million out of their overall profits and that's not going to impact any cash the city would get."

Hennig said Calgary city council needs to review how its contracts are drawn up.

"That is a ton of money. That's got to be equivalent to like four years worth of his salary," said Hennig. "That is an extremely generous severance payment for a guy that quits his job."

Epcor a business model to emulate

Former alderman Ric McIver said he was "blown away" by the severance package.

"I think if there's ever a message that's the wrong one to send, this is it," McIver said on The Homestretch.

He said if the Enmax board of directors approved the employment agreement that led to this severance, "there's a housecleaning due and overdue."

McIver said he thought the severance isn't consistent with the public interest.

The city needs to consider a model more similar to that of Epcor, the municipally-owned water and power utility in Edmonton, where "people are paid on scales that are acceptable," McIver said.

Enmax has declined to do interviews on the matter.