The Globe and Mail reports in its Monday, May 27, edition the natural resources sector has seen a large turnover of chief executive officers. The Globe's Janet McFarland writes that many mining companies have been grappling with the legacy of overpriced takeover deals and have taken big writedowns. CEOs are taking the hit for expensive errors.
Concordia University business professor Michel Magnan says, "As a stockholder, you wind up paying three times -- you pay to recruit the person, you pay to get rid of the person and you pay because he did bad deals."
Former Barrick Gold CEO Aaron Regent received $12-million (U.S.) when he was ousted from the company last June -- including an $11-million (U.S.) severance payment -- while Jamie Sokalsky was paid $11-million (U.S.) last year after he was named the company's new CEO. Barrick shares have been clobbered by a string of corporate setbacks.
Other big departure payments last year went to former Kinross Gold CEO Tye Burt, who earned more than $16-million (Canadian) in 2012; former Talisman Energy CEO John Manzoni, who was paid almost $19-million (Canadian) in 2012; and former Baytex Energy CEO Anthony Marino, who was paid $10-million (Canadian) last year.
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