Boston, MA 04/01/2014 (usastockreports) – Gold giant, Barrick Gold Corporation (USA) (NYSE:ABX), has unveiled a new executive compensation plan for its lead directors and also announced that the company is open to the idea of appointing two new board members after its annual meeting, set to take place on April 30.
The new compensation plan is meant to better line up the company’s management interest while taking into consideration shareholders concerns. Barrick Gold Corporation (USA) (NYSE:ABX) has also announced that all shares awarded under the long term compensation plan will be sold in open market to avoid dilution. Part of the expected changes will require the company’s chief executive officer to own shares, worth 10 times his basic salary by the year 2020.
The latest turn of events comes after proxy advisory firm Glass Lewis criticized Thornton for signing huge bonuses as well as paying severance to the company’s outgoing CEO Aaron Regent.
New Compensation Plan instigated by Shareholders Anger
The new plan will see the company’s top brass executives earn their compensation, depending on their performance and to be paid in the units that can be converted into Barrick shares. The units will only be paid back, one’s an executive retires or leaves the company.
The detailed plan in a regulatory filing is part of Barrick gold plan to improve its governance after a series of mistakes last year, which did not go well with many of the company’s investors. The new compensation plan comes at the back of the company’s shareholders voting against non-binding resolution on executive pay.
Barrick gold Board changes
Barrick gold has also confirmed that its longtime two directors will not be standing for re-election as earlier announced and will consequently be replaced by two new members. The company’s founder and Chairman of the board, Peter Munk, will also step down at the annual meeting to be replaced Co-Chairman John Thornton
Barrick Gold Corporation (USA) (NYSE:ABX)’s shares were down by 2.57% on Monday trading session closing the day at a low of $17.83.