Forbes Magazine: Gary Holden is The 5th Biggest Screwup!

According to Forbes Magazine, Gary Holden, CEO of public-owned energy utility Enmax, is one of the biggest CEO screw ups of the year.

As I recently reported, Holden made national headlines when he sent a ranting email to all Enmax employees chastising a former employee for leaking information to the media about lavish parties that had been held at his home on the company's dime. Holden went so far as to threaten legal recourse against the former employee in what seemed to be a warning to everyone else to keep quiet.

Helen Coster, the author of the article which was published on Forbes.com, said she found it surprising how Holden dealt with the accusations of wild company-fueled parties. She said most CEOs would have used a public relations firm, rather than attempting to control the situations themselves.

That should be sound advice for Mr. Holden during his future business dealings. Not only did he make the situation worse, but according to Forbes, Holden sounded "paranoid" when he warned employees not to speak to the press.

Also under the public microscope at Enmax is the executive pay scale. Salaries for executives have skyrocketed in the last few years.

Company documents show the chairman of the board, a part-time position, is currently banking $180,000 a year. Astounding, considering that only 8 years ago in 2002, the same position paid $18,000. For you statistic folks out there, that is a 1000% pay increase in 8 years. Talk about a cost of living increase.

Gary Holden himself seems to be enjoying regular pay increases. In 2002, his position paid a paltry $700,000 including salary and bonuses. In 2009, Holden took home nearly $2.7 million. That's a pretty good paycheque considering it's funded by City of Calgary taxpayers.

Newly elected Mayor Naheed Nenshi says he is awaiting a full report that will detail how Enmax chooses it's compensation packages. The Mayor also stated that past increases to board of directors salaries had been approved by previous city councils.

Nenshi stated he was most interested in having a long conversation with Holden regarding how current salaries are justified.

For the time being, we will have to wait until next week to find out more.

Naheed Nenshi: "Bad Enmax! Bad!"

A little over a week ago, an email written by Enmax CEO Gary Holden, was leaked to the media. The email was apparently a heavy handed response against a former Enmax staffer who leaked details of Holden's salary and lavish parties held at Holden's personal residence at the expense of the taxpayers. The email went on to say that Enmax would be seeking legal charges against the former employee.

Talk about making a bad situation worse.

Enmax is a city owned utility that provides power to Southern Alberta. So, of course details of $100,000 private parties put on at Holden's home and funded by Enmax caused quite a bit of stir with the citizens of Calgary. Add to that the details of Holden's $2.7 million compensation package for last year, and you have a very bitter public opinion.

Holden has tried defending the parties, which included invited rockstars such as Tom Cochrane and Gord Downy from the Tragically hip, saying that they were meant to showcase Enmax's foray into renewable energy to industry heavyweights. Holden's home was fitted with wind turbines and solar panels and waste-to-energy recovery technology. Holden stated the most recent party in question had 300 invited guests, and 25 Enmax employees who helped stage the event with a cost over $100,000.

It is unclear at this point exactly how many parties have been held.

To add to public outrage, Gary Holden's internal email stressed a firm hand with employees who leak information to the media, and indicated that legal action would be taken against the former employee-turned-whistleblower.

This did not help matters. Several employees who spoke anonymously to media expressed fear for their jobs, should they say the wrong thing to the wrong person. The email also implied an effort of cover-up of Enmax expenditures.

Naheed Nenshi

Last week, new Calgary Mayor Naheed Nenshi weighed in on the Enmax ordeal, demanding an inquiry into the parties, and why Enmax board of directors seemed to receive a 60% increase in compensation last year.

Nenshi met with Enmax board member Clifford Fryers and laid the smack down. The first verbal bitchslap Nenshi gave Fryers was "no more lavish parties". The second was to suggest the taxpayers and Enmax customers would not appreciate the Corporation spending taxpayers money to persecute a whistleblower.

Seems like a reasonable solution. However, in an apparent effort to make a point, Holden has now cancelled the upcoming company Christmas party, citing Mayor Nenshi's insistence of no more parties. Holden also implied that the outrage from Calgarians was to fault for his employees not being entitled to a Christmas party.

Nenshi hasn't made any public statements about the cancellation of the Christmas party, but somehow I doubt he would begrudge city employees their yearly dose of merriment. However, one of the lavish parties in years past was a Christmas party entertained by Tom Cochrane, who performed a 3 hour set under a reported $100,000 contract. A little over the top, no?

Clearly Gary Holden is an all or nothing type man. Either there is a Christmas party which can only be described as an Orgy of Excess, or no party at all.

This man's disturbing attitude needs to be corrected. If he continues his antics, it would not be unreasonable to assume that he will be removed from his position very soon. And good riddance.