Sacked Power and Water chief executive Michael Thomson set for taxpayer payout

POWER and Water’s board renewed chief executive Michael Thomson’s contract just weeks before he was sacked, leaving taxpayers on the hook for a significant payout

Power and Water CEO Michael Thomson, right, with then Minister for Essential Services Gerry McCarthy. Mr Thomson, sacked earlier this month, will be in line for a huge taxpayer payout

POWER and Water’s board renewed chief executive Michael Thomson’s contract just weeks before he was sacked, leaving taxpayers on the hook for a significant payout.

Power and Water has confirmed the board approved a new contract for Mr Thomson in November.

But he was sacked just weeks later after Essential Services Minister Dale Wakefield and Treasurer Nicole Manison informed the board Mr Thomson had lost their confidence over his handling of a major blackout in Alice Springs.

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While Power and Water would not confirm the length or value of Mr Thomson’s new contract, several sources have suggested he would have signed a four-year deal at ECO 6 level. This would have seen him paid about $400,000 a year.

Under the terms of NT public service executive contracts, anyone terminated for reasons other than misconduct or illness must be paid out either half of their total remuneration contract or the balance of their contract, whichever is less.

But Power and Water Corporation chair John Langoulant said claims in the NT News that the termination payment made to the former CEO could be around $800,000 was grossly incorrect.

The payout is understood to be between $200,000 and $250,000.

“As a consequence of the coverage of this story, Mr Thomson has authorised us to confirm that his payout is 50 per cent of his annual total remuneration,” Mr Langoulant said

“This is consistent with the Commissioner for Public Employment’s Determination that sets out how these amounts are calculated.”

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In an earlier statement, a Power and Water spokeswoman said: “The Power and Water board renewed Michael Thomson’s contract in November 2019. We are unable to comment on the terms and conditions as they are confidential.”

In October, Mr Langoulant heaped praise on Mr Thomson in the utility’s annual report.

“I must also thank our Chief Executive Michael Thomson for the work he and the management team (have done), and everyone across Power and Water for your continued dedication to our customers and the Northern Territory community,” he said.

A month later Mr Thomson’s contract was renewed, but within weeks the board sacked him.

Mr Langoulant said the board had no option but to terminate Mr Thomson’s contract after the ministers indicated he had lost their confidence.

“For any board, when the shareholder loses confidence in the CEO, it must respond,” he said.

“The subsequent termination of Mr Thomson was the board’s considered response to the shareholding and portfolio ministers.

“The board has recognised Mr Thomson’s contribution to Power and Water in his term as CEO and wishes him well for the future.”

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Mr Langoulant – who also headed the report into the NT’s budget repair – last week said it was “disappointing that we have had to expend taxpayer funds” on an internal investigation into anonymous allegations of inappropriate hiring practices within Power and Water.

Just last week the NT News revealed Power and Water was saddled with $1.2 billion in debt after posting a $200 million loss last financial year.