New rules would allow N.L. to cut bonuses at provincial energy corporation Nalcor

Newfoundland and Labrador's provincial flag flies on a flag pole in Ottawa, Friday July 3, 2020. (THE CANADIAN PRESS/Adrian Wyld)

Newfoundland and Labrador is proposing new rules that would end the big bonuses regularly paid to executives at provincial corporation Nalcor Energy.

Energy Minister Andrew Parsons tabled the rules today in the legislature, saying the province doesn't have the money to pay out big bonuses to Nalcor's high-ranking employees.

Parsons promised to cut the bonuses last year, after it was revealed Nalcor chief executive officer Stan Marshall took home a $315,000 bonus on top of his $459,400 salary in 2019.

Nalcor is overseeing the construction of the troubled Muskrat Falls hydroelectricity project in Labrador.

At $13.1 billion, the project has almost doubled in cost since it was sanctioned in 2012, and it could double electricity bills for residents if the government doesn't find a way to pay for it.

The bill tabled today would give the government authority to direct Nalcor's board of directors with regard to remuneration and bonuses for non-unionized employees.

This report by The Canadian Press was first published April 21, 2021.