"Gold investors target \u2018excessive\u2019 executive payouts amid deals"

" \n Gold investors critical of lavish executive payouts plan to vote down compensation at upcoming annual shareholder meetings, as\u00a0soaring prices\u00a0for the precious metal spur dealmaking. \n \n\n \n It is the latest knock against an industry that had only recently won back investor favor after being shunned due to disappointing returns. \n \n\n \n Miners who overspent on acquisitions in the 2011 gold boom have curbed premiums that led to billions in impairments when prices later crashed. \n \n\n \n TERANGA GOLD CORP EXECUTIVES COLLECTIVELY WILL RECEIVE $10 MILLION IN SEVERANCE PAY \n \n\n \n But investors say change-of-control provisions allowing for multi-million dollar executive windfalls remain commonplace. \n \n\n \n \u201cIt\u2019s excessive and it\u2019s something that we don\u2019t like to see as shareholders,\u201d said portfolio manager Joe Foster at Van Eck Associates Corp, which holds shares in Barrick Gold Corp, Newmont Corp and other gold miners. \n \n\n \n \u201cThese CEOs, they all have nice pay packages as it is,\u201d he said, adding that he plans to use \u201csay on pay\u201d proxy votes, and meetings with management, to express his view. \n \n\n \n Teranga Gold Corp executives collectively will receive $10 million in severance pay plus $20.9 million for accelerated vesting of options after agreeing to a $2 billion takeover by Canada\u2019s Endeavour Mining Corp. \n \n\n \n The payout is \u201cegregious\u201d given Teranga\u2019s relatively small market cap, said portfolio manager Coille van Alphen at precious metals-focused fund manager Equinox Partners, which owns Endeavour shares. \n \n\n \n Liquidating stock options shows executives are not invested in the company\u2019s long-term future, she added. \n \n\n \n \u201cThe whole point of a no-premium deal is they create value in the new company,\u201d she said. \u201cBut if you really believe that, wouldn\u2019t you want the upside? Why would you take the cash?\u201d \n \n\n \n Teranga said the change of control severance payment \u2013 two times annual salary and bonus \u2013 aligns with the industry standard. \n \n\n \n \u201cEach of the executive officers have been with the company for the better part of the last decade, and the experience of the senior group has played a significant part in our success,\u201d Teranga President and CEO Richard Young said in a statement. \n \n\n \n Equinox is a member of the Shareholders\u2019 Gold Council, launched in 2018 by U.S. hedge fund Paulson & Co. to address high executive pay, cozy board appointments and value-destroying deals. \n \n\n \n Endeavour Mining\u2019s own change-of-control rules provide for each of its five executives to receive two years\u2019 worth of salary and bonus upon termination. Van Eck\u2019s Foster said he has previously voted against Endeavour\u2019s executive compensation, saying it is \u201cabove average\u201d. \n \n\n \n An Endeavour spokesman said: \u201cThe Endeavour Board continually reviews its remuneration policy and takes external advice to ensure that it is appropriate to the size and complexity of the business, while being aligned with shareholder interests. We are in regular dialogue with investors who have consistently approved the policy.\u201d \n \n\n \n At Kinross Gold Corp, CEO Paul Rollinson and executive vice-president Geoffrey Gold are each entitled to three times their annual salary and bonus, as well as accelerated vesting of equity, if the company is acquired, filings show. \n \n\n \n Executives at Canadian miner TMAC Resources Inc will get around C$5.9 million \u2013 about 2% of the miner\u2019s market capitalisation \u2013 if a takeover by Agnico Eagle Mines Ltd goes through. \n \n\n \n That is despite a rough ride for long-term shareholders: TMAC listed at C$5.75 per share in July 2015, and will be bought by Agnico for C$2.20 per share. \n \n\n \n TMAC CEO Jason Neal declined comment. \n "

"Gold investors target \u2018excessive\u2019 executive payouts amid deals"

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