Goldcorp Inc. chief executive David Garofalo will leave once the company completes its merger with Colorado-based Newmont Mining Corp., says the man who engineered the deal.
Mr. Garofalo’s fate had been a question mark ever since Newmont and Vancouver-based Goldcorp announced their US$10-billion union on Jan. 14. But in an interview with The Globe and Mail, Newmont CEO Gary Goldberg confirmed there is no role planned for the Goldcorp boss once the merger, which will create the world’s largest gold miner, is done.
“David will not continue with us,” said Mr. Goldberg, who will run the new company, to be called Newmont Goldcorp. “He’s been supportive, and the whole [Goldcorp] team has been really great to work with as we work through this process.”
Newmont’s president, Tom Palmer, will also assume that title in the combined company, as previously announced. Mr. Goldberg says Newmont will take its time to meet with other Goldcorp executives to select people for other roles, particularly since its North American operating headquarters will move from Elko, Nev., to Vancouver as part of the deal.
The departure will trigger a severance package that should top $10-million for Mr. Garofalo, largely due to Goldcorp stock awards. Mr. Goldberg spoke to The Globe in an interview Wednesday morning at Newmont’s headquarters in the Denver suburbs, just before he hopped on a plane to New York for investor visits made necessary by the market’s initial reaction to the quickly assembled deal to buy Goldcorp.
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