Greg Robinson, CEO of Australia’s top gold producer, Newcrest Mining, will see his annual pay slashed almost 30% to $2.73 million this year and frozen at least until 2015.
Robinson is not alone. No other executive managers will be given raises in a year that saw Newcrest stomach more than $6.2 billion in asset writedowns and restructuring costs.
“Reflective of Newcrest’s financial performance during the 2013 financial year, remuneration outcomes were considerably lower than in previous years,” read a company statement, putting the matter in simple terms.
Along with many other gold producers, Newcrest has been devastated by the volatile gold price, the slide of which in 2013 has been the most dramatic in 30 years. Weak prices have forced the company to cut costs, fire hundreds of employees and close one of its Australian offices, among other belt-tightening measures.
The Melbourne-based company is one of the world’s top five gold mining companies by reserves and market capitalization. The company is engaged in gold and copper exploration, development and mining and has a global workforce of over 19,000.
Newcrest’s stock was trading at $13.30 on Monday afternoon, up 4% thanks to moderate gold price recovery.
Cadia Valley project. Credit: Newcrest Mining
