Speakers at the inaugural Investing in Resources and Mining in Africa conference in Johannesburg tackled executives’ remuneration, with fund managers in particular scathing about the way chief executives are rewarded, said Business Day.
Gold Fields chief executive Nick Holland’s R45 million pay packet last year was a case in point, the newspaper reported.
“The mining industry is heading in the wrong direction and very rapidly I shall say,” Old Mutual gold fund portfolio manager Mike Schroder said.
Mining executives’ pay is not consistent with their companies’ performance and should be reviewed, according to a report on Thursday.
“My advice to the CEOs: Julle bly fokken lekker. R45m? Bliksem! (You’re sitting fucking pretty. Damn!) Your personal greed is the biggest obstacle for the turning of this trend. Come down with the pay packages or get out.”
Conference chairman and former Harmony chief executive Bernard Swanepoel, said pay packets were “exorbitant and over the top”.
A new pay determination formula was needed.
“The credibility of executive management gets undermined by pay which is disproportionate to performance of companies,” Swanepoel reportedly said. – Sapa