Gold mine CEO salaries: Christy Filen - Mineweb
GUGULETHU MFUPHI: In the studio with us we've got Christy Filen, who is Moneyweb’s mining editor. She’s been doing some homework, trying to fish around and find out just how much South Africa’s gold mining CEOs earn. What did you happen to find, Christy?
CHRISTY FILEN: Gugu, Obviously you and I are in the wrong profession. But what was interesting to see is that obviously with the gold prices running last year some of our CEOs received a substantial increase in their salaries, most notably Nick Holland, Gold Fields’s CEO, who cashed in a whole lot of his shares and managed to increase his total package to R33m for the year, of which R18.8m was the cashing in of the shares.
Close on his heels was Mark Cutifani, AngloGold’s CEO, with a total of R29m.
And bringing up the rear, a much smaller producer, Harmony, Graham Briggs the CEO there, with R10m.
GUGULETHU MFUPHI: Those are big numbers, Christy – R33m a year. What do shareholders of a company take into account when they look at the CEO’s performance over the year?
CHRISTY FILEN: Well, Gugu, obviously with the pressure on from the DMR to increase safety levels, safety would be a big driver or key performance indicator in substantiating salary increases. Also things like production levels, cash costs per ounce, and then also development or ore mined. Then also obviously they would do comparisons between themselves, so they’d do measurements between their peers to see how they were doing, what their performance was like relative to the market.
RYK VAN NIEKERK: Christy, did the share prices of the companies mirror these increases?
CHRISTY FILEN: [Laughs] Not quite, Ryk. The share price of Gold Fields increased 14% if you look at it on a year-on-year basis, including dividends between January 4th of 21011 to 2012, and that compared to a 127% increase in Nick Holland’s total remuneration package. But if you strip out the cashing in of the share scheme, his total package actually went down a small part.
GUGULETHU MFUPHI: Many, many – 122% increase.
CHRISTY FILEN: Yes, and Graham Briggs was a 56% increase, and Mark Cutifani was a 24% increase.
GUGULETHU MFUPHI: Christy, clearly I think we are just in the wrong industry – or just … to the wrong partners, maybe. But we’ll work on that.
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And the term ‘golden years’ banned.