Corporate governance advocates have questioned the rationale of boards of mining houses paying stratospheric salaries to their chief executives when their operations are, to all intents and purposes, in the red. And Lomnin appears to have heeded the message.
According to the company’s annual report posted on South African miner’s, Lomnin’s website, Ben Magara earns 66% less than what his predecessor, Scott Simon, used to earn three years ago. Magara earned £579,758 in 2015 financial year, while Simon earned £1.7m.
In the annual report, remuneration committee chairman Jim Sutcliffe said: “I would like to emphasise that the committee and your management have been very conscious of the loss of value suffered by you, our shareholders.
“As you can see, the management’s readiness to sacrifice theirown contractual entitlements in recognition thereof has been fulsome.”
Lomnin has been restructuring its business. It intends cutting its workforce by 6,000. Thus far, it has cut 2,120 employees. It also reduced its contractors by 1,016 people.
Information credits: BDpro, adapted for African Mining Brief Online