A REPORT examining the remuneration and/or compensation packages adopted by 50 of the world’s leading mining companies in 2012 and 2013 has revealed a range of significant findings. It shows that CEOs appointed in 2013 received slimmer deals than those appointed in 2012 and that the median base salary of the 50 CEOs covered declined by 6.9%.
The report shows that median total fixed remuneration/compensation declined by 10.4% and that total pay for chairmen and non-executive directors over the two years reflected modest growth in 2013. The differentiation in fees for chairmen of the top 25 when compared with the next 25 in the report is 50% at the median of each group.
The REM Report also shows that the median base pay increase for ‘other executives’, for example COOs, CFOs and other senior executives listed as ‘same incumbents’, over the two years was 4.9%.
The report was compiled by three separate project partners with an appropriate mix of skills - HRascent (remuneration/compensation specialists), Swann Global (a senior executive search group specializing in the mining sector) and SNL Metals & Mining (a data and news service group). Investec is the Associate Partner.
“The summary report provides interesting insights into current practices and outcomes. It is available free of charge from The Rem Report website, www.theremreport.net The detailed report, which is significantly expanded and carries much detail can also be sourced through the website,” explains HRascent managing director Laurie Wood. “Both reports are especially useful documents for chairmen, the chair of a board’s remuneration committee as well as HR management.”
A section in the report identifies that remuneration/compensation practices vary considerably across the five countries listed.
The ranking of CEO base salaries and total fixed remuneration/compensation shows:
Australian CEOs had the highest fixed pay in 2013;
CEOs of USA listed companies had higher leverage through long-term incentives;
UK listed company CEOs had the highest lift from short-term incentive payments;
South African CEOs are compensated less than those from other countries in all categories.
The reported data covers global, major and mid-cap mining companies with their products being diversified minerals, bulk minerals, base metals, energy minerals, coal, industrial, minerals and agricultural minerals from companies which have their primary stock exchange listing on the New York, London, Australian, Toronto or Johannesburg stock exchanges.
“The report also separates extensive detail covering fixed payments, short-term and long-term incentives as well as additional items,” explains Swann Global CEO Lorraine Meldrum.