The top paid mining CEO in 2017 was Lourenco Goncalves of Cliffs Natural Resources, according to the Bedford Consulting Group’s annual report on compensation in the mining industry.
Managing Partner, Frank Galati says Goncalves earned almost $24 million dollars.
Cliffs may be best known in northern Ontario as the company that sold its holding in the Ring of Fire in 2015 over the slow pace of development in the chromite deposit. It sold those claims to Noront Resources.
Galati says compensation is a good indicator of how well a company is doing.
“If the company doesn’t perform and the executive doesn’t perform, that pay is going to be considerably low, lower,” he said.
“Twenty-three-point eight million for Lourenco is high. I don’t know what his base compensation is off the top but his base compensation is probably four million bucks.”
None of Vale’s or Glencore’s executives made the top five lists in their categories.
Bedford’s Frank Galati says executive compensation reflects the health of the company, and with Glencore, it shows some decline.
“On the mining side of their business, they’ve got a lot of mines that are ending their life, and that’s really the bulk of it,” he said. “They’re really not as efficient or effective as they used to be.”
However, the chair of Glencore’s board, Anthony Hayward was the top in his category earning $1,939,316.
With files from Kate Rutherford