‘Company man’ never ducked an issue or a call

Hey there, time traveller!
This article was published 18/08/2011 (5404 days ago), so information in it may no longer be current.

For as long as anyone in this province can remember, Manitoba Hydro president and CEO Bob Brennan has answered his own phone.

For years, journalists armed with the right number knew Brennan did not hide behind a receptionist or administrative assistant. Even on Wednesday, after it was announced he was stepping down from the posts he has held for more than two decades, Brennan was still picking up, facing questions about why he is leaving, and why now.

After a stunning 47 years in the employ of Hydro, the last 21 as president and CEO, it is meaningless to ask why he is stepping down. Critics may try to connect his departure to any number of issues, including the continuing harangue over the route of the Bipole III transmission line, allegations from an eccentric bird-loving whistleblower about internal mismanagement or the increasingly hostile relations with the regulators at the Public Utilities Board. Certainly, a man of his station who still answers a direct phone line to his desk doesn’t seem like the sort to run away from problems.

It may not be the most important observation of the man who has guided the province’s most important and often most controversial crown corporation. But in an age when public servants cannot cross their legs without seven layers of approval, it certainly says something about the man.

What else do we know about Brennan? Inside Hydro, he was considered a true “company man,” an executive who was, first and foremost, a defender of the firm and not a political shill. Even after two decades as top dog at Hydro — he served both Progressive Conservative and NDP premiers — no one has a real fix on his politics. That is remarkable, especially in hyper-partisan times when governments demand political as well as administrative loyalty.

Brennan was also omnipotent within the utility. After having run the company for so long, it was clear Brennan gave little thought to Hydro’s board of directors. It is telling that the board, the body that legally oversees the CEO, is launching a search for Brennan’s replacement only now, after he has publicly confirmed his intention to retire.

Boards responsible for companies of this size and value, both public and private, often begin planning for the replacement of senior executives months, even years, prior to an actual departure. Although the CEO reached retirement age years ago, there is no evidence the board was willing to plan for a successor, lest it provoke Brennan’s wrath.

That’s not the only evidence of the troubled relationship between Brennan and the board. In recent Public Utility Board hearings on Bipole III, it was learned Brennan hadn’t passed on to the board news that the costs of the new transmission line had nearly doubled to $3.9 billion. Given the political sensitivities of this file, the failure to inform the board that the cost of Bipole III had risen so much demonstrates, if nothing else, a certain disregard for the board.

The lack of a succession plan also reveals a fascinating dichotomy: Brennan, omnipotent within Hydro, was actually powerless to resist the whims of his political masters.

By law, the appointment of a CEO of a Crown corporation requires cabinet approval. Even though there is a board of directors, informed observers understand macro policy is set by the government. From the rerouting of Bipole III to the west to the development of wind power, it has been government driving the agenda. Building the Wuskwatim, Conawapa and Keeyask generating stations may be good for Hydro’s export contracts, but the decision to green-light those projects was made in the Manitoba Legislature’s cabinet room. The directors may have felt, with good reason, that there was no reason to plan to replace Brennan when government would likely make the decision for them.

It isn’t certain a successor will be found internally; many of the senior executives around Brennan are of the same generation. There is a rich layer of talent below that level, but it is unclear whether they have the gravitas to take the top job. The possibility a Progressive Conservative government will be formed after this fall’s election adds to the uncertainty for internal candidates. Tory Leader Hugh McFadyen is a pointed critic of the utility. If he is premier, he may demand the Hydro board look outside its own ranks.

After decades at the helm, Brennan’s retirement adds additional volatility to what is already the most volatile Crown corporation. The only thing we know is when Brennan finally vacates his office sometime early next year, it will be the last time the president and CEO of Manitoba Hydro answers his or her own phone.

dan.lett@freepress.mb.ca