A robust commodities market is helping Canadian mining CEOs rake in the dough in 2010, according to PricewaterhouseCoopers (PwC).
In a report released Thursday morning, PwC found that bonus payouts for Canadian mining CEOs have, on average, risen to 88% of a CEO’s base salary in 2010 compared with 61% last year.
Although the average annual base pay of Canadian mining CEOs remained relatively unchanged in 2010 at $480,000, the average total cash compensation package – base salary plus cash bonus – jumped to $840,000 compared with $670,000 in 2009.
The survey also found the average cash payout in 2010 was $540,000 compared with $303,000 last year.
Ninety-five per cent of Canadian mining CEOs are eligible for cash bonuses.
“Over the last three years we have seen a roller coaster ride in terms of CEO bonus compensation in the mining industry. In 2008, the average bonus paid to CEOs was 79%, it decreased to 61% in 2009 and has now bounced back, and then some, to 88% in 2010,” said Lou Vujanich, the survey leader and principal of Coopers Consulting. “These fluctuations in annual bonus payouts show the effect of companies placing a greater weighting on the variable components of the executive compensation package than they do on the fixed annual base pay component.”
This year’s survey covered 44 positions in mining offices, 58 positions at mine sites and 14 field exploration positions.
PwC also said salaried mine staff in Western Canada – at least 800 mining companies are based in Vancouver – are paid better than their eastern counterparts.
The data comes as commodities such as gold, silver, copper and coal, all of which are mined in B.C., continue to trade at strong price levels.
BIV published its annual list of the highest paid executives in B.C. last month (See “Top 100 highest-paid executives in B.C.” – issue 1083; July 27 – August 2).
The list compares compensation from 2009 and 2008 and revealed the top four executives lead Vancouver-based mining companies.