Glencore chair defends pay plan for new CEO
Glencore’s chairperson defended an incentive plan for the commodity giant’s new chief executive officer, after prominent advisory firms urged investors to vote against it, reports Bloomberg.
Gary Nagle, the handpicked successor of outgoing CEO Ivan Glasenberg, will take over the helm of the world’s biggest commodity trader later this year. Unlike billionaire Glasenberg, he’s not a major shareholder and will be more dependent on his salary and bonus rather than dividend payments.
Glencore last month outlined Nagle’s pay plan, with a maximum total compensation of $10.4-million. The company said given that much of this will be held back until two years after his employment ends, the most he can receive in a year is $6.4-million. But Institutional Shareholder Services Inc. and Glass, Lewis & Co. have recommended investors reject the proposal at the company’s annual general meeting, saying the amount is excessive.
Speaking to investors ahead of next week’s AGM, Chairman Tony Hayward defended the payment plan and said he was disappointed that the two advisory firms are against it.
“We feel like we came up with an overall package that was fair, balanced and equitable,” Hayward said. “We’re not going to withdraw it from the AGM. It will be interesting to see what the result is.”
Hayward said he’s optimistic it will get significant support based on the conversations he’s held with shareholders, though Glencore will take a final view after the AGM vote.
Newmont acquires Canada’s GT Gold in $325mn deal
Newmont, the world’s biggest gold miner, has acquired Canada’s GT Gold in a deal worth $325mn. The gold giant now controls the Tatogga gold-copper project in the Traditional Territory of the Tahltan Nation.
“With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” commented Newmont President and CEO Tom Palmer.
“We look forward to continuing to build a respectful and meaningful relationship with the Tahltan Nation, including the community of Iskut. The relationships we have with Indigenous communities, First Nations and host communities are critical to the way we operate. We will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward as the Company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project.”
Newmont’s acquisition includes the Tatogga project, comprised primarily of the Saddle North deposit, which has the potential to contribute future significant gold and copper annual production. There are also further exploration opportunities beyond the known deposits at Saddle North within the land package. The Tatogga project adds to Newmont’s existing interest in the prospective Golden Triangle through the company’s 50% ownership in the Galore Creek project.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. A world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. The American miner is celebrating its 100th anniversary this month.
With gold prices on the rise, the last six months has seen gold industry M&A activity accelerating. A recent Mckinsey report, advises that the industry need to be mindful of mistakes made during the previous gold price boom, when growth was chased unidirectionally by several companies.