Institutions oppose Barrick Gold co-Chairman compensation
The undersigned institutional investors who collectively steward assets of $916 billion, are concerned by the decision of Barrick Gold Corporation to award an $11.9-million bonus payment to their co-Chairman, John L. Thornton, appointed in June 2012. This amount, for a signing bonus for a co-Chairman of the Board is, to our knowledge, unprecedented in Canada and is in addition to other compensation for the year for a total package of $17 million in 2012. This compensation is inconsistent with the governance principle of pay-for-performance and is therefore disproportionate and sets a troubling precedent in Canadian capital markets.
Accordingly, the undersigned will vote against both the Advisory Resolution on Executive Compensation and the election of the members of the Compensation Committee at the Barrick Gold Annual General Meeting. We have expressed our concern in a letter to the Chairman of the Board.
The undersigned represent seven of the largest institutional investors in Canada. Hermes Equity Ownership Services (Hermes - EOS) represents assets on behalf of more than 30 major institutional funds worldwide.
- Alberta Investment Management Corp. (AIMCo)
- British Columbia Investment Management Corporation (bcIMC)
- Caisse de dépôt et placement du Québec (CDPQ)
- Canada Pension Plan Investment Board (CPPIB)
- Hermes Equity Ownership Services (Hermes - EOS)
- Ontario Municipal Employees Retirement System (OMERS)
- Ontario Teachers’ Pension Plan (OTPP)
- Public Sector Pension Investment Board (PSP Investments)
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