Entire Alberta Health Services Board Axed....

[Seeker]

Man, I wish I lived in Alberta so I could vote for this guy!

"Health Minister Fred Horne has axed the entire Alberta Health Services board, including chairman Stephen Lockwood, after the directors defied his wishes to shoot down executive bonuses.

On Tuesday, Horne issued an 11th hour directive to AHS to rethink the pay-at-risk, worth up to $3.2 million to 99 executives for 2012-13. But in a snap board meeting, AHS went ahead with the bonuses, to fulfil the previously-agreed on contracts.

On Wednesday, Horne said the move led him to fire the entire 10-person board."

Read more:

http://www.calgaryherald.com/health/Horne+announces+firing+Alberta+Health+Services+board/8514905/story.html#ixzz2W1KuxdP1

[Fido]

First off, Fred Horne is my MLA and does a very good job. But, I am unsure he has done the right thing here. I will wait to hear more on this topic before agreeing or criticising.

The following is from our new head of the Edmonton Economic Development Corporation. Brad Ferguson has blogged some really good viewpoints on various city and Alberta problems.

http://brad-ferguson.com/

Governance in the Public Service

by eedcbrad

I’m feeling disheartened and concerned tonight.

Over the past decade, we have pushed and voted for accountability, transparency and good governance. We’ve embraced the Neil McCrank Report on Boards, Agencies and Commissions, and legislated a Governance Secretariat. We have moved to a world of Results-Based Budgeting and have graduated numerous elected officials and public servants with ICD.D (Institute of Corporate Directors) designations.

So much progress and ambition … to build a better Alberta.

Yet tonight, I have learned that the Alberta Health Services (AHS) Board stood by their conviction that certain bonuses were deserved by public officials, and now risk termination because they defied the demands of the Minister of Health. The Minister stated that “We cannot and will not accept AHS’s decision. It is completely out of steps with the times” and “we will ensure … they live within their means.”

This is where I’m challenged.

I watch the unplanned budget cuts to the health and education system like the rest of you. I struggle reading Cam Tait’s articles on PDD. I have friends whose jobs have been eliminated. And I’m starting to feel this isn’t my Alberta anymore.

But … we put these Boards, Agencies and Commissions in place to steward these complex organizations on behalf of government. We do so to de-politicize the decision making, and to increase accountability to us, the taxpayers. We appoint good people, citizens of Alberta, to do five main things: (1) Hire the CEO and hold him/her accountable for performance; (2) Shape the strategic plan that delivers on the expectation of the Shareholder; (3) Approve the business plan and operating budget; (4) Assess and ensure organizational risks are adequately managed; and (5) Ensure the policies are in place to prevent risk, fraud or mismanagement.

By in large, these boards do a great job – AIMCo, ATB, AFSC, AGLC, AITF, ERCB, UofA, UofC and all the other acronyms. So when the Minister … any Minister … decides to undermine these Boards and declare that they will make the decisions on budgets, programs or staffing, the whole concept of governance gets thrown out the window. When such occurs, there is no longer a role for an independent Board, and the organization is nothing more than a department of the Ministry.

And I’m not just being hard on the government in power.

When the leader of the opposition states that “The Minister has to assert his authority and he has two ways to do it … he can issue a clear directive telling the Board to rescind the bonuses, or he has to fire the Board” she is equally as wrong, as both these options are also blatant political interferences.

Recent assault on Boards, Agencies and Commissions comes (1) When the government is not clear on their expectations for performance prior to budget approval; (2) When they use the budget as the tool to imply policy; or (3) When they change the rules mid-course. Whatever the case, if Alberta is going to mature into a beacon of good governance, then we need to shift the blame away from Director education ... and toward clearly articulated Shareholder expectation.

[melcrothers]

Horn morally did the right thing - but let this run away on him for months. I fear he legally ( replace he with us ! ) will end up paying a good portion of the contracted bonus. AHS has been the biggest screwup politically I've seen in the past 10 years and the PC's are being stupid and meanspirited in how they are handling it.I almost wish Duckett and his cookies were back for at least he told it like it was.

IMHO

[better4me]

Horne did the right thing and fired the Board under his privilege as shareholders representative.

If AHS were a public corporation with a majority shareholder, the majority shreholder always has the right to call a special meeting of the shareholders and vote in the board of their desire.TSX rules would require minimum 21 days advance notice to conduct a proxy battle that is expensive on both company and shareholder. This is the approach taken by Pershing Square (shareholder) against the board at CP Rail. Horne's decision basically makes the inevitable the immediate.

The board should have either done the shareholder/government's wishes or resigned.

The board opinion was the bonuses were contractual obligation and must be paid out. However this puts the board into the position of being so out of touch with reality that they did not put into the employment contracts an overriding discretionary clause (common concept). Stupidity at its highest if the clause is missing.

Its the board's pick they be fired for insubordination, better than being fired for stupidity.