Shakeup set for Hydro One
Remaking board Denison’s first order of business
TORONTO The Ontario government needs someone with a proven business pedigree to skipper the transformation of Hydro One from Crown corporation and public utility into an efficiently run growth company with public shareholders.
David Denison says he is up to the task.
Denison, who ran the Canada Pension Plan Investment Board for more than seven years until he stepped down in 2012 when the CPP fund was valued at more than $160 billion, said he believes selling 60 per cent of Hydro One into public hands is the right policy decision.
“Oftentimes, good policy decisions can get undermined by less than stellar execution, and (averting that) is my motivation here,” Denison said in an interview Thursday after the province announced a gradual sale of the utility, following recommendations from former TD Bank CEO Ed Clark, who headed a panel reviewing public assets.
Denison said his first order of business will be to reconfigure the board of directors to ensure they possess the skill set required to operate in what will be a new world when an initial 15 per cent of the utility is sold to the public.
Assembling the board could take a couple of months as he meets with the current directors, who have agreed to extend their terms during the transition, and searches for new members with experience dealing with publicly traded companies.
Denison said he has already had several meetings with Hydro One chief executive Carmine Marcello, who is helping to plan the transition strategy.
Asked whether Marcello will remain CEO once chunks of the utility are sold off, Denison said “that’s something the board will determine going forward.”