Bedford Group/TRANSEARCH Publishes 14th Annual Executive and Board Compensation and Governance Report Covering the Global Mining Industry
TORONTO, Nov. 20, 2023 /CNW/ - Bedford Group/TRANSEARCH today announced the publication of the 2023 Executive and Board Compensation and Governance Report for the mining industry. Bedford analyzed data and insights from 306 mining companies, including over 1,200 named executive officers and 1,800 board members. Additionally, the report highlights good governance and reporting best practices.
"Changes within the industry are forcing miners to rethink their compensation strategy as they prepare for 2024 and beyond," said Frank Galati, Managing Partner and Compensation Practice Leader at The Bedford Group/TRANSEARCH.
"In 2022, we witnessed almost double the turnover of CEOs and CFOs within our dataset compared to the previous fiscal year. Higher supply chain and operating costs, tight external capital markets, and critical labour shortages have left many mining companies struggling to secure and retain C-Suite talent with the necessary experience to navigate this changing landscape," said Galati.
While tighter capital markets often lead to downward pressure on executive base and total compensation, unique market stressors led Bedford to observe minimal variation in median year-over-year compensation for CEOs and CFOs of companies with assets under $20 billion. This, paired with increased operating costs and minimal access to capital, has caused financial strain for junior and intermediate exploration and development companies. Conversely, executives in companies with assets over $20 billion, who have the revenue to support increased costs, received the highest year-over-year percentage increase in compensation of all asset value tiers. CEO base salary and total compensation increased by 15% and 26% respectively, while CFO total compensation increased by 32%.
Despite heightened attention to diversity, women remain underrepresented in the mining industry. In the report, only 4.1% of mining CEOs identified as female in 2022 compared to 3.7% in 2021. Of the remaining NEOs, 14.7% identified as female compared to 14% in 2021. Finally, 21.8% of board members were female compared to 19.2% in 2021. The Bedford Group/TRANSEARCH expects these percentages to increase in the coming years as companies work to align with diversity requirements implemented by shareholder rights groups.
Moving forward, as miners navigate a tumultuous future with a renewed focus on diversity, decarbonization, and green energy, explorers and developers will need to depend on creative solutions to sustain competitive compensation practices that will attract and retain necessary talent.
The Executive and Board Compensation and Governance Report highlights year-over-year compensation changes at the board and executive level for base salary/retainers, equity and non-equity incentives, and total compensation. The 2023 report also includes information and guidance around good governance and reporting best practices in the areas of diversity, board composition, severance and change of control benefits, share ownership, and problematic pay practices.
The 2023 Executive and Board Compensation and Governance Report – Mining can be accessed on the Company's website at Compensation Reports | The Bedford Group/TRANSEARCH
Bedford Group/TRANSEARCH is one of North America's leading privately held executive search and talent strategy firms, with offices in Toronto, Oakville, Calgary, and Boston. Founded in 1980, The Bedford Consulting Group is the North American partner of TRANSEARCH International, and one of the Top 10 largest executive search firms in the world with 60 offices in 40 countries.
SOURCE Bedford Resources Inc.
Frank Galati, Managing Partner & Compensation Practice Leader, +1 416 970 7600, [email protected]
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