Enmax CEO makes Forbes top screw-up list

Enmax boss Gary Holden has made Forbes Magazine's Top 10 list for the fifth biggest CEO screw up of 2010.

The head of Calgary's city-owned electrical utility sent a company-wide email earlier this fall criticizing media coverage of his $2.7-million pay package and his private house parties featuring famous rock stars.

"In the letter a paranoid-sounding Holden warned his employees not to leak material to the press. Which, of course, is exactly what they did," said the business magazine on its website Forbes.com.

Article author Helen Coster said most CEOs would have used a public relations expert to deal with a situation like the one facing Holden.

"We thought it was surprising that a CEO like Mr. Holden would choose to address these accusations in this kind of way. It was more about how he handled it than what he did," Coster said.

"Ranting CEOs are never a good thing, but when CEOs rant in print to their entire staff in a medium that is very easy to pass along, that's even worse."

Meanwhile, company documentsshow that salaries at Enmax have risen dramatically in recent years.

The retainerpaid tothe chairman of the board is much higher than it was at the start of the decade, the figures revealed. The chairman currently earns $180,000. In 2002, the part-time position came with a paycheck of $18,000, according todocuments.

Since 2002, the pay packet for the position of CEO and president has gone up almost 400 per cent. Eight years ago, the president and CEO at that time was paid almost $700,000 in salary and bonuses.

'I look forward to having a very good conversation about how those numbers are justified.' Naheed Nenshi, Calgary mayor

Last year, Holden took home about $2.7 million.

The increases in the board pay were approved byprevious city councils, noted CalgaryMayor Naheed Nenshi.

He said he's expecting a report next week that will explain how Enmax set its compensation.

"I'm very interested in understanding the methodology of how Enmax has set its board compensation. I'm looking forward to seeing those numbers and I look forward to having a very good conversation about how those numbers are justified," Nenshi said.

The company's senior executive and board compensation is in line with similar firms in the industry, Enmax officials said.

The city-owned utility had been refusing to make pay levels public, but officials are now promising to do so by the end of the year.

Coster said that the Forbes list proves that no matter what the salary, top executives are human and make mistakes.