BCI Opposes Decision to Increase Retirement Allowance to Goldcorp Inc. Chair
VICTORIA, BC, March 22, 2019 /CNW/ - British Columbia Investment Management Corporation (BCI) will exercise our shareholder rights in voting against the proposed merger of Goldcorp Inc. (TSX:G; NYSE:GG) and Newmont Mining Corporation at the Goldcorp special meeting on April 4, 2019.
BCI is concerned by the recent decision of Goldcorp to award a retirement allowance of US$12 million to their chair, Mr. Ian Telfer on completion of the transaction with Newmont (NYSE: NEM). The retirement allowance is almost triple the previously disclosed entitlement of US$4.5 million. This is inconsistent with the governance principle of pay-for-performance and sets a troubling precedent in the capital markets. The payout to Mr. Telfer was a factor in our decision to vote against the Newmont transaction. We issue this statement to express our concerns over this inappropriate decision.
"BCI finds this decision to be fundamentally misaligned with the interests of shareholders who have experienced a significant destruction of almost 53 per cent in value since 2006," said Daniel Garant, senior vice president, public markets. "While we welcome the recent announcement that Mr. Telfer will no longer take up the position of deputy chair at Newmont should the merger go through, we fail to see how such an egregious payout is warranted."
As a long-term investor, BCI places significant value on good corporate governance and believes that decisions around compensation – for both management and board directors – are critical to a company's governance. BCI supports transparent, reasonable, and appropriately structured compensation packages that reward performance and are strongly linked to a company's long-term success.
About BCI
With $145.6 billion of managed assets, British Columbia Investment Management Corporation (BCI) is a leading provider of investment management services to British Columbia's public sector. We generate the investment returns that help our institutional clients build a financially secure future. With our global outlook, we seek investment opportunities that convert savings into productive capital that will meet our clients' risk/return requirements over time. We offer investment options across a range of asset classes: fixed income; mortgages; public and private equity; real estate; infrastructure; and renewable resources.
With public equity holdings of $64.5 billion as at March 31, 2018, BCI is one of Canada's largest institutional investors in public equity markets.
SOURCE British Columbia Investment Management Corporation (bcIMC)
For further information: Gwen-Ann Chittenden, Director, Corporate Communication, 778-410-7310 | [email protected]
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