Executive compensation at Hydro-Québec set to increase
Hydro-Québec Unveils New Executive Compensation Policy
Hydro-Québec, Canada's largest electricity producer, has announced a new performance-based remuneration policy for its top executives. The new policy, approved by the Council of Ministers, aims to incentivize successful leadership and drive accountability in overseeing Hydro-Québec's ambitious $200 billion investment plan through 2035.
The policy, exemplified by the compensation package of the new CEO, Claudine Bouchard, includes a fixed annual salary and a performance bonus capped at 50% of the salary. Bouchard’s annual salary is set at $659,000, and her performance bonus can reach up to half of this amount, allowing total compensation to approach $988,500 if the maximum bonus is granted.
The performance-based component of the remuneration package aligns with public sector standards for Crown corporations. The exact metrics for the performance criteria are not publicly detailed, but they are designed to incentivize successful leadership amid Hydro-Québec’s ambitious expansion and improvement plans.
Bouchard’s base salary represents an 11.7% increase over her previous position as chief operating and infrastructure officer, reflecting the increased responsibilities. The compensation is prorated based on the number of months served in the specific executive role within the fiscal year.
Last year, the former CEO, Michael Sabia, received a performance-based remuneration of $132,000 in addition to his base salary of just under $664,000. No further details about the performance criteria or the specific metrics for bonus determination are publicly available.
In other news, Hydro-Québec recorded a net profit of $2.66 billion in 2024, down from 2023. The company has proposed a rate increase for residential electricity consumers of 3% annually, while commercial and industrial clients would see their rates increase annually by 4.8% over the next three years.
The total gross debt of Quebec was $258 billion as of March 31 last year. The salaries and bonuses of the five highest-paid individuals at Hydro-Québec will be made public in the next annual report. Michael Sabia will leave Hydro-Québec, remaining in his post until the beginning of July. Claudine Bouchard, after her appointment as Clerk of the Privy Council, received $148,000 more than her base remuneration of almost $590,000.
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[1] Government of Quebec, "Performance-based remuneration for the top executives of Hydro-Québec," 10 February 2023, https://www.gouv.qc.ca/fr/actualites/2023/02/10/remuneration-a-performance-pour-les-dirigeants-clefs-de-hydro-quebec/ [4] Hydro-Québec, "Ambitious plan to expand production capacity and improve grid reliability," 15 March 2022, https://www.hydroquebec.com/en/about-us/strategy/strategic-plan
The new executive compensation policy of Hydro-Québec, which encourages successful leadership and accountability in managing the company's $200 billion investment plan, follows the public sector standards for Crown corporations and is approved by the Government of Quebec. The policy, as demonstrated in the compensation package of the new CEO, Claudine Bouchard, consists of a base salary and a performance bonus that can escalate the total compensation to nearly $988,500.
The performance-based remuneration package for top executives at Hydro-Québec is subject to specific metrics that aim to incentivize efficient leadership amid ambitious expansion and improvement plans, although the exact criteria are not publicly detailed.
