Macquarie Generation CEO quits

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

Macquarie Generation said chief executive Russell Skelton had quit and been replaced by Steve Saladine, who worked previously for Delta Electricity, another power generator owned by the NSW government.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

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

The breaches were uncovered as the government was preparing to privatise the generator.

It is believed contracts for as many as 27 employees provide for so-called "transfer benefits" that exceed government guidelines by an estimated $1.9 million, or about $70,000 per employee. No evidence of fraud was uncovered, the government said. However, board approval had not been obtained.