Never could understand why they didn't hedge production. By the way heard there was a revolt at the Newcrest agm, shareholders knocked back huge salary increases to directors responsible for $8 billion in writedowns.
The MD is now being paid more than the chief exec at RIO and BHP. WTF?
Newcrest Mining chairman Peter Hay says he will consider changes to the gold miner’s remuneration structure after receiving a first strike at its annual general meeting on Friday.
With more than 99 per cent of the vote counted, 44.79 per cent of Newcrest shareholders had voted against the remuneration report, easily exceeding the 25 per cent threshold required to cast a first strike.
If more than 25 per cent of shareholders oppose the remuneration report next year, Newcrest will be forced to hold a vote over a possible spill of the board.
Speaking at the meeting in Melbourne on Friday, Mr Hay conceded there had been “wide ranging views" about the suitability of Newcrest’s remuneration structure and he vowed to consider changes.
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“In consultation with stakeholders, it is clear that there are wide ranging views about the level of remuneration and aspects of the design of the company’s incentive scheme,’’ he said.
“The board will in coming months consider with stakeholders whether further changes to our remuneration structure should be made."
The comments come after CEO Sandeep Biswas’ remuneration package drew criticism from proxy advisors in the weeks prior to the AGM.
ISS governance labelled Mr Biswas’ pay “excessive", while CGI Glass Lewis queried why he was getting paid a larger base salary than the bosses of BHP Billiton and Rio Tinto.
Two of the three major proxy advisors recommended Newcrest shareholders reject the company’s remuneration report at the AGM.
Mr Biswas said given there were numerous aspects to the remuneration report, it was difficult to determine if there was one particular item that sparked the opposition from shareholders.
“Clearly as the chair says there is disappointment that it happened, because it is over the entire remuneration report, different people have different (concerns),’’ he said.
Mr Hay said Mr Biswas pay was structured to reward high performance, and was therefore designed to help drive a turn-around in the company’s fortunes.
“His incentives will only be paid where performance is above business as usual expectations," he said.
He also said the package was designed to “attract someone of Sandeep’s calibre".
But Mr Hay also said that honouring the remuneration pledges made in the past would be important to retain the faith of employees.
“It is important for Newcrest’s reputation with its employees, and potential employees, that the company follows the pre-determined, approved processes and that employees trust the integrity of those process(es)," he said.
The gold price was below $US1200 this morning for the first time in almost four weeks, and has only been below $US1200 per ounce on eight days in the past 12 months.
Newcrest believes it can be cash flow positive this year so long as the gold price averages $US1250 per ounce.
The company announced today it had paid down $US100 million of its $4.1 billion debt pile from cash generated in the September quarter.
Read more: http://www.smh.com.au/business/mini...-structure-20141031-11ewf7.html#ixzz3HmWqSZhL
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