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  • Government Denies Approving Ed Martin’s $6-Million Severance/Pension

    More details are emerging about just how much money Ed Martin received when he left Nalcor Energy, but Martin and Government remain at odds over whether or not the Premier and Natural Resources Minister approved the deal. Late last night the former Nalcor President CEO released documentation of his severance and pensions, totaling $6-million, including a copy of the settlement agreement dated April 20th. The agreement between Martin and Nalcor says Government approved the severance package.

    The agreement states the former Nalcor board was “advised by the Government of Newfoundland and Labrador that in all the circumstances it has agreed that Martin is entitled to receive the severance and pay in lieu of notice payments.”  The agreement also goes on to say that in order for Martin to be paid his severance, he was terminated without cause.

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    The revelations are directly contrary to what the Premier told reporters yesterday outside the House of Assembly.

    Government fired back after Ed Martin released the details of his settlement. Natural Resources Minister Siobhan Coady says some details of the Settlement Agreement are not accurate.

    The Premier’s Office released documentation at 1:18 a.m. this morning.

    In a letter to the current Board of Nalcor, dated May 10th, Coady says the statement that the former Nalcor Board was advised by Government to pay Martin’s severance is simply not true.

    Further, Coady cites minutes of a meeting held on April 20th that state former Nalcor Chair Ken Marshall had a conversation with a representative from government that confirmed that an agreement between Government and Ed Martin existed that promised Ed Martin’s severance once he left Nalcor. Coady says that statement is also simply not true.

    Coady says just the opposite is true in this case. She says government was advised that the former Nalcor Board had made the decision to give Ed Martin his severance and only after that decision was made was government informed.

    A reply from Nalcor to Coady’s letter only acknowledges the receipt of the letter. Nalcor Representative Peter Hickman says in the letter that Nalcor has recieved a legal opinion that Coady’s letter does not change the legal obligations of the Corporation to Ed Martin.

    gov martin coady letter 1

    gov martincoady letter 2

    Martin’s Total Severance/Pension

    In a written statement accompanying the settlement contract, Martin says he has been paid a severance of $1.39-million, less tax deductions of about $670 000, netting about $720 000. He will also receive pension benefits from both the Public Service Pension Plan of about $95 thousand dollars per year (before taxes) , and a Supplementary Executive Retirement Plan. The latter is about $182 thousand dollars per year, but Martin elected to take it as a one time up front payment of gross 4.7 million – netting 2.4 million after taxes. Martin says any other bonuses are not part of the settlement agreement but paid as part of his compensation from 2015 and early 2016.

    You can find the total breakdown of Martin’s settlement here.

    Martin ends his statement by saying he has tried to give full disclosure in difficult circumstances.

    Ed Martin Statement

     

     

     

     

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