Friday, September 4th14.6°C
26775
27284

Barrick Gold revamping executive compensation plan, focussing on long-term

TORONTO - Barrick Gold Corp. (TSX:ABX) is revamping its executive compensation, shrinking the annual bonuses it pays and increasing the focus on long-term results and increasing the number of shares in the company the chief executive must own.

The moves come as the gold miner reported that its top executives were paid less last year compared with 2012, as the gold miner struggled with big losses.

Chief executive Jamie Sokalsky received total compensation of $7.7 million last year, down from $11.4 million in 2012, as he received fewer share-based awards and no options.

Co-chairman John Thornton also saw his compensation, which included a $12-million signing bonus last year, fall from $17 million to roughly $9.5 million.

Chairman Peter Munk, who will retire at the next annual meeting, took home $3.9 million, down from about $4.3 million in 2012.

Under the executive compensation changes announced Monday, Barrick said executives will be assessed on their collective performance against a scorecard that will disclosed to shareholders in advance.

The scorecard will include eight performance measures including return on invested capital, dividends to shareholders, capital project performance and free cash flow.

Barrick said a majority of compensation will be in units that eventually convert into Barrick shares, but cannot be sold until the executive retires or leaves the company.

The company said annual bonuses will also make up a smaller portion of an executive's compensation.

Barrick also increased the minimum share ownership requirements for its chief executives to 10 times their base salary, up from four times.

The gold miner came under fire last year when shareholders voted against a largely symbolic motion to approve the company's approach to executive compensation at its annual meeting.

A group of institutional investors, led by Caisse de depot et placement du Quebec, were concerned about the signing bonus awarded to Thornton.

Since then, Barrick has been working to improve its corporate governance and address the shareholder concerns.

Late last year, Barrick announced Munk would retire at annual meeting in April and the board would be reworked to add several new faces and increase the number of independent directors.

Barrick also struggled outside of the boardroom last year, hammered by a sharp drop in gold prices.

The company took billions in writedowns, slashed its dividend and started to slim down its organization.

In addition, Barrick was forced to suspend work at its massive Pascua-Lama mine it is building in South America due to court and government decisions.

The Canadian Press


Read more Business News

27613


Recent Trending




Today's Market
S&P TSX13418.10-178.31
S&P CDNX553.95+0.20
DJIA16055.98-318.78
Nasdaq4667.34-66.16
S&P 5001914.99-36.14
CDN Dollar0.7548-0.0031
Gold1120.70-3.00
Oil46.51-0.24
Lumber233.00+0.10
Natural Gas2.661-0.064

 
Okanagan Companies
Pacific Safety0.21-0.01
Knighthawk0.010.00
QHR Technologies Inc1.23-0.01
Cantex0.04-0.01
Anavex Life Sciences1.23+0.12
Metalex Ventures0.05-0.00
Russel Metals21.09+0.00
Copper Mountain Mining0.60+0.00
Colorado Resources0.075-0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.075-0.005
Decisive Dividend Corp2.62+0.12

 





FEATURED Property
2379494738 Coopland Crescent
3 bedrooms 3 baths
$329,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


The ball and chain

I have been pleasantly surprised of late to speak with business owners who understand the impact of fixed versus variable costs. A fixed cost is one that must be paid each and every month regardless o...


Where does the money go?

Photo: Thinkstock.comOne of the major components of business relationships that involve money are the fees in the investment industry. There is currently a quiet battle being waged between the practit...


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...

_



26376




Member of BC Press Council


27438