Canadian mining CEOs earning in excess of $1 million rose in 2011, according to a PricewaterhouseCoopers report released this morning.
The report found the annual base salary for Canadian mining CEOs held fairly steady year over year, rising to $486,000 in 2011 from $480,000 in 2010. However, more CEOs earned over $1 million in total compensation.
It found that:
-56% have annual compensation packages (base pay, bonus, equity-based pay) over $1 million, compared with 52% in 2010;
-35% have annual compensation packages (base pay, bonus packages) over $1 million, compared to 32% in 2010; and
-10% have an annual base pay in excess of $1 million, unchanged from 2010.
Len Boggio, a senior partner in PwC’s mining practice, noted in a press release that rising operation costs and some softening in equity markets kept CEO compensation from rising dramatically.
“Although the Canadian mining sector is overall very stable and in a position for continued growth, the confused capital markets could ultimately impact the sector and put a lid on compensation,” he said.
The survey also noted a trend of salary gains down the hierarchy in mining companies. It observed that 80% of salaried positions are currently eligible for some form of incentive plan – such as an annual cash bonus or productivity improvement plan – compared with59% in 2002.
“The increase in compensation incentives for salaried positions lower down the hierarchy is a philosophical change for Canadian-based mining companies,” said Lou Vujanich, survey leader and principal of Coopers Consulting, in a press release.
“Fierce competition to attract and retain qualified mining professionals across the spectrum of positions is driving up compensation costs for mining companies.”
Jenny Wagler
Twitter: JennyWagler_BIV