Seven global miners — all Canadian — have underperformed gold prices over past five years: investor survey – by Gabriel Friedman (Financial Post – December 4, 2018)

It’s the first report by Shareholders Gold Council, formed earlier this year by large investors who are upset with gold miners

Toronto-based Yamana Gold Inc. posted a negative 73 per cent total shareholder return in the past five years — the worst among 17 large companies analyzed in a report released Monday by gold sector investors.

The report pointed a finger at Peter Marrone, who founded Yamana in 2003, and serves as executive chairman and until recently chief executive. The ratio of his ownership stake in his company as compared to his compensation during the past five years was around 0.1, lowest among all executives analyzed.

It marks the inaugural report by the Shareholders Gold Council, which was formed earlier this year with backing from U.S. billionaire John Paulson and other large investors who are upset with gold miners’ share prices that have largely underperformed the price of gold.

The group wants management to invest alongside shareholders, and used its first report to suggest that the ownership-to-compensation ratio for either CEOs or chairs of the board strongly predicts company performance.

At the other end of the spectrum, Bill Beament, chief executive of Australia’s Northern Star Resources Ltd., had the best ownership-to-compensation ratio at around 10.6 — meaning his ownership stake is worth more than ten times his compensation. His company was also the best performer, delivering an 869 per cent return to shareholders during the past five years.

For the rest of this article:

Comments are closed.