Canadian Barrick Gold (TSX:ABX) announced Wednesday a major shakeup of its management team, saying that it has replaced Aaron Regent as president and chief executive officer by Jamie Sokalsky, who was the company’s chief financial officer.
The world’s largest gold miner also revealed director John L. Thornton has been appointed co-chairman with Barrick’s founder Peter Munk.
What it was not divulged were the details about why the Toronto-based company decided to make this move, though Munk did hint at the weak share price.
“We are fully committed to maximizing shareholder value, but have been disappointed with our share price performance. Our board has every confidence in Jamie’s experience and ability to take the company forward,” he said in a statement.
Last month, Barrick increased its dividend by 33%, in a move that was welcome by investors, who have been calling for a bigger piece of the pie for years. Barrick thought the decision would help push up share prices that have underperformed increases in the gold price over the last decade.
Shares of Barrick closed at $43.70 Cdn on Tuesday in trading on the Toronto Stock Exchange.
(Image: Aaron Regent in a TV interview on February, You Tube)
4 Comments
Thomas Bor
This ties in nicely with another article posted on this site.
http://www.mining.com/2012/06/04/merit-and-mine-cost-over-runs-run-rampant/?utm_source=digest-en-diamond-120605&utm_medium=email&utm_campaign=digest
Interesting how things work…
J_cornford
Its not alone. Haven’t they noticed ? Practically all miners, particularly goldies, have been languishing very seriously. Investors have gone away. Nothing much they can fdo about it.
Christopher Kirby
Too little, too late. So many CEOs do not add value to shareholders and nothing happens. This is another example. Gold prices soaring high for the past few years, and the largest gold producer’s share prices languishes…hello! Wake up and smell the coffee. Where are the investment analysts, the regulators, the shareholders and debt holders? Shame….Look at Walter Energy…another example of a company which has lost 62% of its value in less than one year and overpaying for Western Coal, yet the senior management is still in place. Although, they have been without a real CFO for several years…perhaps that explains it!
Deb
Agreed, destruction of shareholder value seems too common these days with no repercussions except for the poor retail investor who is left out in the cold! Just look at the Facbook fiasco.