Goldcorp Inc. says its long-time chairman will not be joining the board of Newmont Mining Corp. after an outcry over a huge bump in his retirement benefits.
Last week, Goldcorp’s board approved a near-tripling of Ian Telfer’s retirement benefit to US$12-million from US$4.5-million. The cash is payable to Mr. Telfer should Newmont succeed in its plans to buy the Vancouver-based miner. In explanation for the increase, Goldcorp has said Mr. Telfer’s compensation has not historically been adjusted for inflation.
The arrangement was met with scorn by some stakeholders, especially considering Mr. Telfer agreed to sell Goldcorp near a historic low in its stock price.
Joe Foster, portfolio manager with big Goldcorp shareholder VanEck, told The Globe and Mail he was “appalled” by the increase for Mr. Telfer, as well as the approximately US$10-million severance for outgoing Goldcorp chief executive David Garofalo if the acquisition goes through. VanEck is Goldcorp’s biggest shareholder and Newmont’s third biggest, according to Refinitiv data.
With shareholders at both Newmont and Goldcorp yet to vote on whether to approve the transaction, the compensation controversy injects an added air of uncertainty over whether the US$10-billion deal will close.