Mayor blasts Enmax CEO's email

The way the head of Enmax has handled a pay and perks controversy shows there are governance problems at the city-owned utility company, says Calgary Mayor Naheed Nenshi.

Enmax CEO Gary Holden recently sent a company-wide email criticizing media coverage of his $2.7 million pay package and his private house parties featuring famous rock stars held at company expense, CBC News reported on Monday.

The email also suggested Enmax would pursue legal action against an unnamed senior employee who first leaked the information.

After Holden's email became public, Nenshi met with Enmax board of governors' chair Cliff Fryers, telling him the CEO's memo was inappropriate.

"If you're doing stuff you don't want to see on the front page of the newspaper or at the top of the CBC News, don't do that stuff. And that's really the key here," Nenshi said.

The mayor has also asked the chair of the Enmax board for an accounting of how Enmax pays its senior executives, he said on Thursday.

"I've asked for a full report on how their executive and board compensation is set, what comparables they're using and whether or not those are satisfactory to the shareholder," he said.

As the sole shareholder of Enmax, the city needs to be sure the utility's board is acting in the city's best interests, Nenshi added.

"So much of the defence that we saw was about 'oh well, the media ought not to have told people what we were doing.' No, the point is: don't do it."

Nenshi said Fryers agreed that the email was unwise. And both the mayor and Fryers predicted Enmax will refrain from throwing lavish parties in the future.

"I'll be pretty upset if any rock stars are hired for anything at this juncture going forward. And I would be surprised if they hired any rock stars for anything."

Enmax officials said the company will not comment on Nenshi's criticism of Holden's email or on his meeting with Fryers.