The Auditor General of Newfoundland and Labrador, Denise Hanrahan, today delivered the second of two reports to the House of Assembly on the performance audit of Nalcor Energy. Today’s report contains findings and a recommendation regarding Nalcor’s employee compensation.
The audit concluded that Nalcor’s management and executive employees’ total compensation was, and continues to be, higher than the total compensation of comparable provincial government positions. Since Nalcor’s executive and management positions that were reviewed had the same accountability, problem-solving, and know-how classification ratings as equivalent provincial government positions, no rationale could be determined for such discrepancies.
The audit also found that Nalcor’s base salaries for the majority of the positions reviewed was higher than comparable positions assessed against industry benchmarks.
The report identified that while Nalcor’s executive and management staff may not have received general economic increases since 2016, the increases over the past ten years to salary levels, pay scales, bonuses, incentives, and employee benefits has resulted in compensation costs higher than the provincial government.
The full report, as well as an audit overview, can be found by visiting: www.ag.gov.nl.ca.
Quote
“Nalcor continually increased or broadened salary scales, even after bonuses and incentive programs were removed, all while Nalcor employees received retiring allowances, higher insurance benefits, and better leave entitlements than provincial government employees. Ultimately, we could not determine a business reason for this variance. When a public sector entity’s compensation practices are more lucrative than others, it creates disparity in the public service, adds to recruitment and retention challenges, and ultimately reduce the public’s trust that public money is being managed appropriately.”
Denise Hanrahan
Auditor General of Newfoundland and Labrador
-30-
Learn more
Follow us on Twitter @OAG_NL
Like us on Facebook
Join us on LinkedIn
Media contact
Chrysta Collins
Manager of Communications and Stakeholder Engagement
Office of the Auditor General
709-730-1568
chrystacollins@oag.nl.ca