Monday, April 27th8.2°C
25924
24733

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

24910


Recent Trending




Today's Market
S&P TSX15344.08-64.25
S&P CDNX690.10-7.60
DJIA18037.97-42.17
Nasdaq5060.25-31.84
S&P 5002108.92-8.77
CDN Dollar0.8262-0.0009
Gold1199.90-3.40
Oil56.31-0.68
Lumber255.00-1.20
Natural Gas2.473-0.017

 
Okanagan Companies
Pacific Safety0.08-0.04
Knighthawk0.010.00
QHR Technologies Inc1.40+0.02
Cantex0.035+0.005
Anavex Life Sciences0.395-0.035
Metalex Ventures0.095+0.000
Russel Metals27.05-0.11
Copper Mountain Mining1.25+0.10
Colorado Resources0.10+0.01
ReliaBrand Inc0.004-0.001
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.19-0.01
Decisive Dividend Corporation1.80+0.10

 



25849

FEATURED Property
2281364304-688 Lequime Road
2 bedrooms 2 baths
$268,800
more details
image2image2image2
Click here to feature your property
Please wait... loading


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...


What's your score?

There was a time when we would sit down with nothing more than a sheet of paper and a sharp pencil to do the math. Totalling our expenses and subtracting our revenue, the amount left over was the answ...


Do you dare to dream?

Photo: Thinkstock.comI have never been able to understand why some people can only see as far ahead as the end of the current day. Instead of aiming for long term goals, they just wallow in their ever...

_



25482

25289


Member of BC Press Council


24843