How much compensation does the executive of a Canadian mining company deserve? We cannot answer that question. We can only tell what they do earn. Here are some numbers from CostMines’ 2012 Survey Results, Canadian Mine Salaries, Wages and Benefits. It was made available yesterday. These numbers come from information that public companies must disclose, so no secrets revealed here. Numbers are in U.S. dollars for the year 2011.
To start at the top of the income chain. The highest paid CEO of a major Canadian mining company took home a cool total compensation of $30 million last year. True his base salary was a mere $2.5 million; his share-based awards but $7.8 million; his option-based awards just above $10 million; his non-equity incentive plan compensation a paltry $6 million; and “all other compensation” was $4 million. Just imagine: four million dollars’ worth of golf clubs, private jets, sail boats, penthouses, and what-not that I cannot imagine.
Not all Canadian major mining company CEOs do this well. The lowest paid COE of a major Canadian mining company got a mere $894.100 in total compensation in 2011. How can he live on that, net alone hold his head high at conferences and shareholder meetings?
How does the Canadian major mining company’s COE fare by comparison with the CEO of an American major mining company? Here are some numbers from the CostMine 2011 Survey Results U.S. Metal and Industrial Mineral Mine Salaries, Wages and Benefits report. Numbers are for 2011 so they are directly comparable to Canadian compensation.
The highest paid CEO of a major US mining company took home $39.5 million in 2011. His salary was $2.5 million; pension was $390 thousand; securities granted under option a whopping $15.4 million; and shares subject to resale restriction was $7 million.
In the CostMine 2011 Survey Results U.S. Coal Mine Salaries, Wages and Benefits report, we see that the highest paid CEO of a U.S. Coal mine took home only $10 million. Annual salary was $1.1 million; options award was $2.5 million; stock awards was $3.4 million; non-equity incentive plan compensation was $2.7 million; and “all other compensation” was $508 thousand. Far fewer planes golf clubs and penthouses for coal miners, I suppose.
There is a vast amount of such data in the CostMine surveys. We will look at more in future postings.