Miners strike bonus gold
Last Updated: Thursday, September 02, 2010 | 12:02 PM EDT
TORONTO — Rising commodity prices have fattened up the wallets of Canada's mining CEOs.
Their bonus payments have reached a whopping 88% of base pay in 2010, compared with 61% in 2009, according to a new study from Coopers Consulting Ltd. and PricewaterhouseCoopers LLP (PwC).
The study shows that the average total cash compensation package for the CEOs is $840,000 this year, compared with $670,000 in 2009.
The average base pay of $480,000 was little changed year over year, so the big pay increase is due to bonus payments.
"We are now seeing some dramatic swings back in bonus compensation that demonstrate a new confidence in commodity pricing and profitability," Len Boggio, PwC senior partner, said in a statement.
He pointed out that the low bonus levels of 2009 reflect the fact that many companies did not hit the target levels required for larger payouts.
The whole mining sector was suffering in early 2009 after the financial crisis and global recession hammered commodity prices. But as prices have rebounded, so has the performance of mining companies.
According to the study, the highest reported cash incentive amount for a CEO was a staggering 434% of base pay in 2010. That compares to 104% in 2009.
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