Osisko Mining Inc.’s shareholders voted in favour of a controversial stock-options package Friday, while its chief executive officer says the company intends to move away from options as a form of compensation over time.
Ahead of Friday’s annual general meeting, proxy advisory firm Institutional Shareholder Services (ISS) advised shareholders of the junior mining company to vote against the package, citing concerns over its excessive cost, and criticizing the lack of performance-based criteria for receiving the options.
At Osisko, options are widely granted to officers, directors and employees, and often make up the lion’s share of compensation. For example, CEO John Burzynski made $3.15-million, with about $2.1-million in options, a $500,000 salary and a $590,000 bonus. Independent director Sean Roosen was paid $743,000 last year, $688,000 in options and a $55,000 cash fee.
In an interview after the AGM, Mr. Burzynski, said that 70 per cent of votes cast at Friday’s AGM were in favour of the options plan, with 30 per cent voting against. The threshold to pass was a majority.
Earlier this week, in a move to appease some of ISS’s concerns, Osisko announced that a portion of Mr. Burzynski’s 2018 compensation will be paid in restricted share units, which are based on achieving certain performance-based metrics.