- Write by:
-
Tuesday, March 26, 2019 - 12:08:27 PM
-
794 Visit
-
Print
Mining News Pro - British Columbia Investment Management Corp. says it will vote against the proposed merger of Goldcorp and Newmont Mining due to Goldcorp’s decision to award its chairman, Ian Telfer, a US$12 million retirement allowance.
According to Mining News Pro - BCI, which provides investment management services to B.C.’s public sector and has about C$145.6 billion under management, says the retirement allowance is almost triple the previously disclosed entitlement of US$4.5 million and is “inconsistent with the governance principle of pay-for-performance and sets a troubling precedent in the capital markets.”
“BCI finds this decision to be fundamentally misaligned with the interests of shareholders who have experienced a significant destruction of almost 53% in value since 2006,” Daniel Garant, BCI’s senior vice president, commented in a press release. “While we welcome the recent announcement that Mr. Telfer will no longer take up the position of deputy chair at Newmont should the merger go through, we fail to see how such an egregious payout is warranted.”
BCI, one of Canada’s largest institutional investors in the public equity markets with holdings of C$64.5 billion, also noted that it “places significant value on good corporate governance and believes that decisions around compensation – for both management and board of directors – are critical to a company’s governance.”
Goldcorp declined a request from The Northern Miner for comment.
The company referenced Telfer’s retirement allowance on page 88 of its 249-page information circular of March 7, stating the increase of the allowance to US$12 million from the mining executive’s previous entitlement of US$4.5 million was recommended by the Human Resources and Compensation Committee, reviewed and considered by the Goldcorp Special Committee, and approved by the Goldcorp board “on the basis of Mr. Telfer’s role as founder and strategic leader of Goldcorp subsequent to the acquisition of Glamis Gold in November 2006.”
“At that time, Mr. Telfer assumed the role of chairman and relinquished entitlement to benefits he would have otherwise been entitled to receive as an executive, including participation in the various executive incentive plans, other than a retirement allowance,” the circular stated. “The retirement allowance approved in 2006 did not contain any indexing to reflect inflation, and other than his annual salary and annual Goldcorp RSU grants made at the same value as other Goldcorp directors, Mr. Telfer did not receive any other benefits from Goldcorp since that time.”
Short Link:
https://www.miningnews.ir/En/News/350503
Mining News Pro - Gold prices surpassed the key $1,800 level on Monday as investors continue to assess the Federal ...
Mining News Pro - Epiroc is set to acquire Canada-based Meglab in a bid to support the mining sector’s transition to ...
Mining News Pro - BCI has awarded $90 million worth of contracts for its Mardie salt and potash project in Western ...
Mining News Pro - BCI Minerals has completed the institutional component of its entitlement offer, raising an initial ...
Mining News Pro - BCI Minerals intends to raise $48 million to accelerate the development of the Mardie salt and potash ...
Mining News Pro - The new Minister of Energy and Mines of the Dominican Republic, Antonio Almonte, announced that his ...
Mining News Pro - BCI Minerals has received Australian Government backing for its Mardie salt and potash project in ...
Mining News Pro - Newmont has entered an agreement to acquire a large greenfield exploration land package of ...
Mining News Pro - Newmont has reported a more than ninefold rise in earnings in the first quarter of this year, a period ...
No comments have been posted yet ...