Boston, MA 04/11/2014 (wallstreetpr) – Barrick Gold Corporation (USA) (NYSE:ABX) will hold its annual shareholder meeting April 30, during which the bank will release financial results for the first quarter. The meeting will also see shareholders vote on a new executive compensation package. Shareholder uproar over bloated compensation of the company’s executives, more so Chairman John Thornton, led the company to reconsider its executive reward scheme.
As shareholders head to the annual meet, they are expected to back the miner’s new compensation plan. That follows a recommendation by Intuitional Shareholder Service (ISS), a proxy advisor that previously urged shareholders to reject Barrick’s compensation approach. The institution also advised shareholders to approve the director nominations.
Revamped compensation scheme
According to ISS, the gold giant has been able to respond to shareholder concerns by coming up with a revamped and realistic compensation scheme. On that note, the company has taken into consideration the long-term interest of investors. Among other things, the new compensation scheme improves disclosures, brings the larger part of executive pay in form of shares and locks up the executive shares until retirement or departure from the company.
In the revamped compensation package, Barrick Gold Corporation (USA) (NYSE:ABX) can be seen trying to tie executive rewards to performance.
Source of fire
A payment of $17 million to Mr. Thornton in 2013 is what ignited the uproar over seemingly excess executive pay. The previous year saw the outgoing chairman Peter Munk take home a total pay package of $4.3 million.
Commendable job
All is not bad at Barrick Gold Corporation (USA) (NYSE:ABX). The company is making good progress in its compensation issues as well as dealing with debts. Although the company registered 2013 as one of its worst performing moments in its long history, the company managed to shore up its balance sheet by paying down a significant portion of its debt. The company also divested underperforming assets and cut workforce. The now leaner Barrick is expected to perform better and drive more value to shareholders.
