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Ceo’S Package $34k A Month

Pamela Hill

Pamela Hill

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

THE Minnis administration has terminated the management services agreement between American company PowerSecure and Bahamas Power and Light (BPL), which enabled foreign BPL executives to be paid more than any Bahamian parliamentarian or executive at the electricity provider,  according to Works Minister Desmond Bannister yesterday.

Under the MSA, former BPL CEO Pamela Hill was paid a salary of $25,000 per month and received $6,000 each month in housing benefits, down from an initial $8,719 monthly. She also received monthly benefits of $3,833.33, Mr Bannister said in the House of Assembly.

In addition to paying this monthly fee of $34,833.33 for the former executive, Bahamian taxpayer dollars also paid $27,322.46 in travel costs and $23,637.55 in relocation costs. Mr Bannister said for quite some time, Bahamians paid travel costs for a CEO who only lived in the Bahamas for five days each week – from Monday to Friday, but spent weekends elsewhere. She was terminated last month with immediate effect.

The executive vice president of generation and operation received a similar salary. This executive received $33,583.33, with a salary of $23,750, housing benefits of $6,000 and other benefits of $3,833.33.

The executive vice president of transmission and distribution operations cost taxpayers $26,083.33. This included a salary of $18,750, housing benefits of $6,000 and other benefits of $1,333.33.

“To put these salaries that the former administration agreed to reimburse to executives selected by PowerSecure in perspective, it must be appreciated that a member of Parliament is paid less in one year than any of the two top executives of BPL make in one month,” Mr Bannister said yesterday. “And the highest salary paid to any Bahamian executive at BPL is $10,600 per month.

“This is indeed a wonderful example of what members opposite meant when they spoke of putting Bahamians first.”

He continued: “On August 17, 2017, the board of BPL wrote to PowerSecure to itemise certain alleged breaches of the MSA. In accordance therewith, PowerSecure had 30 days to respond thereto. Their options were to cure the alleged breaches; or to take issue with them. If they failed to cure the alleged breaches without reasonable excuse, then the MSA would be terminated.

“On September 18, 2017 PowerSecure through its local attorneys took issue with the alleged breaches and itemised certain alleged breaches by the board of BPL, both current and former. They have in their words accepted the repudiation of the MSA.

“The MSA is therefore terminated. PowerSecure has agreed to leave their personnel in place until as late as December 31, 2017 to facilitate an orderly transition.

“I wish to personally thank PowerSecure Inc for their contribution to the Commonwealth of the Bahamas during their tenure here. We anticipate moving forward under new and vibrant Bahamian leadership.”

Apart from hefty salaries, the MSA stipulated PowerSecure was to be paid an annual base management fee of $2m.

It also provided for the payment to PowerSecure of an annual performance compensation fee, which could reach a maximum of 150 per cent of the base management fee. This equates to an additional $3m.

As of July 25, 2017, PowerSecure has been paid a total of $7,994,753.42.

The fee includes: $2,666,666.71 to PowerSecure for management fees, $901,500 for the BPL business plan, $1.2m as a performance bonus, $2,035,078.80 for the Harbour Island project and $1,191,507.91 for other services inclusive of Hurricane Matthew restoration.

Earlier in his contribution, Mr Bannister said: “I wish to draw the attention of honourable members to the existence of a confidentiality clause in the MSA.

“The people’s government is one of transparency, not confidentiality. Where others conclude agreements and hide them from the people, we are unmistakably different. Where others make promises that they don’t intend to keep, the people’s government cherishes and protects the right of the Bahamian people to know.

“An interesting provision in the MSA provided that PowerSecure was to be reimbursed ‘for all wages, salaries, bonuses and incentive compensation, benefits, pensions and other post-employment benefits, travel and business expenses, executive recruiting fees and labour costs described in (its) business plan and reasonably incurred by the service provider in connection with the employment of the executive management.’”

He said the problem was the former administration did not put any limits or caps on the salaries taxpayers had to reimburse, so BPL ended up having to reimburse PowerSecure $76,626 for executive recruiting fees, since the people they sent to the Bahamas were not necessarily their employees.

Comments

ohdrap4 1 year, 11 months ago

where do i apply? is the position still vacant?

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concernedcitizen 1 year, 11 months ago

I will bet you she did not keep all of the 24,000 a month ,bet you about 10 grand or more of that went as kick back in US .PowerSecure and the PLP were involved in a well oiled skim to loot BEC ,a company half a billion in debt ,w outdated equipment that is only keep afloat by the Bahamas taxpayer and our ability to borrow money as a nation

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screwedbahamian 1 year, 11 months ago

If you cannot win the lottery in the USA, no problem man, just come to the Bahamas. Why are we complaining, its just the cost of a modern day change of company name and old time corruption.

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proudloudandfnm 1 year, 11 months ago

Damn! And the entire time they was gettin huge paychecks yall's electric was going off every 7 hours!!!

If you still support the PLP you is one dumb ass...

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concernedcitizen 1 year, 11 months ago

Someone high up in the PLP was getting kickback in U S dollars as part of that high salary

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TalRussell 1 year, 11 months ago

Comrades! BPL, also had a "Do Not Call List" (DNCL) of Bahamalanders, not worthy to call for a monthly salary of $34,000 plus, plus! Did she pay her light bill, and on time?

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ConchFretter 1 year, 11 months ago

"...it must be appreciated that a member of Parliament is paid less in one year than any of the two top executives of BPL make in one month,” Mr Bannister said yesterday.

So... if MPs get paid less than $34 a year, how come so many of them is end up being millionaires?!? BOL!!

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TalRussell 1 year, 11 months ago

Comrades! I have long advocated MP's be paid a yearly salary of $110,000 plus a $3000 monthly expense allowance, The PM's yearly salary should be $225,000, plus we need build an official PM's residence. Cabinet ministers yearly salary $175,000, plus a $5000 month expense account.

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jackbnimble 1 year, 11 months ago

Come on people. Why are we shocked? We all know in the Bahamas FOREIGN is always better. It's promoted through our culture from Government down. Why do you think they get all the best jobs and benefits. Nothing new. This been going on from King Hatchet was a Hammer.

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Socrates 1 year, 11 months ago

high pay and benefits package by Bahamas standards, but not unusual elsewhere.. sad thing is we didnt get what we were paying for because gov't still has veto power over all decisions.. its best they just hire 'seat-warmers' since ultimately all gov't run entity decisions are made downtown anyway, never mind how much the politicians deny it...

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DEDDIE 1 year, 11 months ago

Her compensation is according to industry guidelines. You don't attract persons with her expertise and pay them peanuts.The analogy with politician was unfortunate due to the fact that most politicians are woefully unqualified to ran a petty shop.

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SP 1 year, 11 months ago

Her compensation may be according to industry guidelines. However, attracting persons with her "supposed expertise" should also have been tied to her performance!

Paying her peanuts is exactly what she deserves for what she delivered, which actually amounted to nothing.

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Truism 1 year, 11 months ago

How do you spell deflection. DESMOND. What a joker.

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sheeprunner12 1 year, 11 months ago

In Bahamian salary scales for public service etc .......... this is excessive, regardless of how competent she may have been ........ based on her preparation and execution of BPL during Matthew, she did not deserve $35,000 per month ........... but I agree with others on this thread, that she probably did not collect all of that $35,000 p.m. salary ........ someone in the Cabinet/BPL Board got at least 25% of that as a bonus for the sweetheart deal.

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DEDDIE 1 year, 11 months ago

SP and sheeprunner lets be reasonable. BPL problems would be insurmountable for any top executive. A company that hasn't made a profit in over twenty years, constant government interference, an elite list of persons that can't be disconnected, a powerful union,culture of theft and a board that practices wholesale cronyism. SP you think she deserve peanuts because in one year of employment she couldn't change BPL. In addition, she is a women and a Jamaican heading a Bahamian company and last but not least she is black.If she was male, British and white........lol.

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sheeprunner12 1 year, 11 months ago

No ....... you are wrong ........ BEC was quite profitable under Peter Bethell and up to Michael Moss ..... But the policy changes in the early 2000s with Bradley Roberts doomed BEC and 9/11 didnot help the situation much

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DEDDIE 1 year, 11 months ago

I am right! If BEC operated on a cash basis they would never would have been label as profitable. One hundred and two million in account receivable mainly owed by the government in 2002 and deem uncollectible in subsequent years wipe out the farce of a profitable BEC. The Government never paid BEC but those bills showed up on the income statement as revenue thus an inflated net income.

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ThisIsOurs 1 year, 11 months ago

Seems like Powersecure did have a plan to "do something" but the plan was not politically palatable, even today Desmond Bannister is saying he's not letting anyone go. Huh?

The correct thing for Powersecure to have done was pull out. These things always make the contractee look bad. When you give sound advice but the boss doesn't want to listen it's your only option, when everything breaks down people naturally question, "but you supposed to be the expert"

Not so alarmed at the salary, think it's pretty standard for an executive of a large international corporation. I worked for a company over 20 years ago with executives earning this level salary. Not surprising, so I don't believe there was any kickback on the salary. Catch 22 is BEC had to spend some money to get out of their current circumstance. The question was would the investment pay off and could they deliver. Will wait to see who is inserted next to feast off the BEC prize bull.

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