Excerpt from the Official Report of
DEBATES OF THE LEGISLATIVE ASSEMBLY

(Hansard)


April 8, 2014

Further questions on severance payments to former BC Lottery Corporation CEO Michael Graydon

S. Simpson: We know that when Michael Graydon left his post as the CEO of the Lottery Corporation, he took with him a severance and bonus package totalling about $86,000. Along with that, he kept his laptop, his iPad and his phone. We know that a week later he was working with his new employer, the Vancouver casino. The Finance Minister approved the deal.

My question to the minister is: was he aware that Mr. Graydon was moving immediately into a new job in the private sector when he approved the severance package? And, if the minister didn't know, will he be seeking a repayment?

..

S. Simpson: If Mr. Graydon had been out on the street without income for those two months, I might be accepting of that. But we know that he went almost immediately to the employ of his new employer.

But, hon. Speaker, when the government announced its holdback policy in 2012, it noted that these holdbacks were: "tied to financial and business results." In February and March, Mr. Graydon didn't deliver any financial or business results to the Lottery Corporation because he was working for Paragon. But still his performance during those months was apparently exemplary enough to earn him the full holdback payment. Not only that, but he was given a bonus that was 75 percent more than the year previous.

Again to the Minister of Finance, who signed off this deal: how is it possible for someone who has left their job and is already working somewhere else to still earn a performance bonus?

...

S. Simpson: Clearly, the minister and I have a difference of opinion over what's appropriate.

On a February 3 e-mail, a manager at the Lottery Corporation wrote to the vice-president of human resources, raising a flag about the size of the holdback. He said: "Should holdback be prorated for the time that Mr. Graydon is employed during the fiscal year 2013-14 — for example, ten out of 12 months — or will he be paid the non-prorated amount?"

Three days later an e-mail was sent from human resources to the Public Sector Employers Council, saying the package gave Mr. Graydon the non-prorated holdback. "We agreed, between our chair and the minister," is what that e-mail said.

To the Finance Minister, why did he ignore the advice of management at the Lottery Corporation and instead let Mr. Graydon receive thousands of dollars in performance bonuses when he was already working somewhere else?

events
Saturday, November 16, 2019 - 12:00pm - 4:30pm