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(Kitco News) – Investors see a new twist in this endless drama as Newmont Mining and Goldcorp move forward in the planned merger project.
On Wednesday, Goldcorp announced that the chairman of the board, Ian Telfer, would not join Newmont's board after the merger.
"Telfer's focus is on Goldcorp's shareholders approving the ongoing transaction with Newmont," the company said in a press release.
This decision comes as the company and Telfer were under considerable pressure on its retirement compensation program. Last week, it was revealed that Telfer would receive a lump sum retirement benefit valued at approximately $ 12 million, almost three times more than its original $ 4.5 million retirement program.
Many badysts have spoken out against compensation. Joe Foster, a portfolio manager at VanEck, Goldcorp's largest shareholder and Newmont's third largest shareholder, told The Globe and Mail he was "dismayed" by the payment, given the disappointing performance of long-term prices.
Rick Rule, CEO of Sprott US Holdings, told Bloomberg News that Telfer's special bonus seemed "excessive".
In a recent comment, Adrian Day of Adrian Day Asset Management said he would vote against the merger if the compensation proposal was not canceled.
"Tripling the Telfer payment just before the acquisition is a slap, it's an insult to shareholders," he said. "We have no voice in these payments, so this is our only way of clarifying our position."
Day notes that since 2006, Goldcorp's shareholders have seen their investment lose two-thirds of its value.
The newly created Gold Shareholders' Council (SGC) also sentenced Goldcorp's board of directors for approving the new set of compensation measures.
"As Goldcorp tells its shareholders to sell their shares near their lowest level in 13 years, Goldcorp's management is expected to reap more than $ 33 million in potential change of control payments," the group said in a statement. communicated.
The uproar around executive pay comes after Newmont spent nearly a month fighting a hostile offer from Barrick Gold.
Warning: The opinions expressed in this article are those of the author and may not reflect those of the author. Kitco Metals Inc. The author has endeavored to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. This is not a solicitation to exchange merchandise, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept liability for losses and / or damage resulting from the use of this publication.
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