BC Ferries CEO David Hahn stepping down

David Hahn, the controversial CEO of BC Ferries will step down at the end of the year, the ferry company announced on Tuesday morning.

Hahn announced his early retirement as part of amajor cost containment program, saying he was stepping down voluntarily.

"I felt my job was done. I think I could have sat here easily for another15 months and probably skated but that would have been a little out of personality, so it was the right time," he said.

"I'm quite happy with the decision and I think it's just an important step forward and a new set of eyes here couldn't hurt either."

Hahn said it wasn't an easy decision "but it will help facilitate a more constructive dialogue around future service levels and funding."

Hesaid he was not pushed out of the job or pressured to leave.

"I want to be clear on one thing: Its my choice to retire and it is on my terms that Im leaving. I believe it to be in the best interests of the organization, otherwise I would have never considered it."

Compensation led to controversy

Hahn, 61,has been a lightning rod for controversy because of the$1 million compensation package he has been earningat a time when BC Ferries has been raising prices and cuttingservices.

He also has a pension packageworth $77,000 a year and a special supplemental benefit would have added another $237,000 annually for a total of about $314,000 every year if he had worked to age 62.

But in taking voluntary retirement one year before the end of his contract, Hahnis ineligible for any severance payments, according to BC Ferries board chairman Donald Hayes.

Hayespraised Hahn's eight years of service as head of the provinces ferry service.

"Under Mr. Hahns leadership, BC Ferries has been fundamentally transformed, resulting in improvements in all areas of the companys business," said Hayes in a statement issued by the board.

"Seven new ships have been brought into service on-time and on-budget, upgrades have been made at many of our major and minor terminals, and significant improvements have been made in the travel experience for our customers, said Hayes.

But NDP ferries critic Gary Coons said it's been a horrendous time for coastal communities that depend on the ferry service.

"When you look at what's happened with BC ferries over the last seven or eight yearsyou know it's very clear that the decision todayshows how BC ferries has basically been run aground since the Liberalsstarted treating them as a cruise ship experience instead of an integral part of our transportation network," said Coons.

Hayes saidthe successor to Hahn at the head of thepublicly-owned corporation will be announced in November.

The new headwill be paid according to new guidelines limiting the compensation of BC Ferries executives to the same levels as provincialpublic sector workers in similar positions, said Hayes.

Major cost cutting program rolled out

Along with his retirement Hahn also rolled out plans to cut costs at the provincially-owned ferry corporationto reduce the$20 million budget shortfall in the current fiscal year.

"Over the last month, I have conducted an extensive review of our operating and capital costs and the following is a list of cost saving actions to be undertaken," he said.

BC Ferries says the newcost cutting measures include:

• Hiring freeze of all non essential positions.
• Wage and salary freeze for next two years.
• Select early retirements.
• Reductions in executive compensation through elimination of the long term incentive plan.
• Cancellation of discretionary expenses.
• Reduced use of outside contractors and consultants.
• Elimination of many charitable and community donations.
• Cancellation of Vancouver Canucks partnership.
• Eighteen month delay in select capital expenditures.
• Application to provincial government for cancellation of up to 400 round trips per annum (major routes only).