Barrick Gold institutional investors are concerned by the company’s decision to award new co-Chairman John L. Thornton an $11.9-million bonus payment.
Thornton was appointed in June 2012, and this is his signing bonus. Investors suggest it’s an unprecedented amount, and say it will be added to other compensation for the 2102, resulting in total a total payout of $17 million.
Also, this high compensation is allegedly inconsistent with the governance principle of pay-for-performance, and sets a troubling precedent in Canadian capital markets.
Read: Get a grip on high executive pay
So, the investors plan to vote against the company’s advisory resolution on executive compensation, as well as the election of the members of the compensation committee at the Barrick Gold annual general meeting.
The undersigned of this recent complaint represent some of the largest institutional investors in Canada, who collectively steward assets of $916 billion. They are:
- Alberta Investment Management Corp.
- British Columbia Investment Management Corporation
- Caisse de dépôt et placement du Québec
- Canada Pension Plan Investment Board
- Hermes Equity Ownership Services
- Ontario Municipal Employees Retirement System
- Ontario Teachers’ Pension Plan
- Public Sector Pension Investment Board
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