MacGen boss quits over contracts row

The chief executive of one of the country's largest power generators has quit after an investigation into unauthorised changes to the employment contracts of some senior officials.

Macquarie Generation said its chief executive, Russell Skelton, has quit and been replaced by Steve Saladine, who worked previously for Delta Electricity, another power generator owned by the NSW government. Mr Saladine worked for a time in the trading room at Macquarie Generation, which Mr Skelton ran for some time.

Mr Skelton and MacGen's human resources head Sharon Howes stepped aside in September following apparent changes to the employment contracts of senior staff, made without the knowledge of the board or the government.

The breaches were uncovered as the government was preparing to privatise the generator. No evidence of misconduct or fraud was uncovered, the government said.

However, internal approval requirements had not been followed when entering into certain employee contracts.

It is believed contracts for as many as 27 employees included "transfer benefits" following planned privatisation which exceed the government's guidelines. Talks are expected to try to wind back these additional entitlements.