Gold Fields CEO Nick Holland’s Pay Jumps 38% as Shares Decline
Gold Fields Ltd. (GFI) increased Chief Executive Officer Nick Holland’s pay by more than a third last year as the company that mines the metal in Peru and Australia lost 14.5 billion rand ($1.6 billion) in market value.
Holland’s pay climbed 38 percent to 45.3 million rand, of which 9.3 million rand was his basic salary, according to the Johannesburg-based company’s annual report on its website. He made 24.3 million rand in share pay-outs originally awarded to him in 2009, it said.
Gold Fields’ share price dropped 17 percent in the year through Dec. 31. It was the worst performer of the five-member FTSE/JSE Africa Gold Mining Index (JGOLD) after AngloGold Ashanti Ltd. (ANG) and Harmony Gold Mining Co. The benchmark FTSE/JSE Africa All- Share Index rose 23 percent over the same period.
Gold Fields’ full-year profit dropped 5.7 percent to 6.83 billion rand for fiscal 2012 as work stoppages cut gold production and raised wages. The company on Feb. 11 spun off its deeper, labor-intensive mines into Sibanye Gold Ltd. (SGL), keeping South Deep as its only South African mining asset.
The gold price rose 7.1 percent during 2012 while the rand weakened 4.5 percent against the dollar.
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