Impala Platinum Holdings Ltd. (IMP) paid former Chief Executive Officer David Brown 28 percent more in his last three months at the world’s second-biggest producer of the metal than in the entire preceding financial year.
Brown, who stepped down as CEO at the end of June last year, remained a director of Impala for a further three months during which he was paid 16.8 million rand ($1.7 million) in salary, benefits and bonuses, the Johannesburg-based company said in its annual report posted on its website. Brown was paid 13.1 million rand during his last full year as CEO.
“Brown received a final consideration in accordance with his separation and restraint of trade agreements,” said the report, released today. “The payment included a performance incentive” for the previous financial year.
Brown announced his resignation in January last year, two days before the start of a six-week strike that halted Impala’s Rustenburg operations, the world’s largest platinum mine. Discontent spread in the industry that’s mainly located in South Africa’s North West province, culminating in the deaths of at least 44 people, including 34 killed by police in a single day near a Lonmin Plc (LMI) mine in the worst mining violence since the end of apartheid in 1994 as falling prices cut profit.
Impala’s profit fell 52 percent in the year ended June after it wrote down assets by 2.3 billion rand and costs rose by more than inflation, it said last month.
Brown’s successor, Terence Goodlace, was paid 7.5 million rand in salary and benefits, the report said.
Goodlace elected not to take an increase or participate in incentive plans, according to the annual report.
“His decision is primarily driven by low platinum group metal commodity prices and low levels of profitability,” Impala said.
The company’s share price fell 31 percent to 93 rand by June 28 from a year earlier.
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