The band of industry players who got Detour to knuckle under has just released a comment on the news that Newmont is taking over Goldcorpse. Here ya go, fresh out the oven:
Shareholders’ Gold Council (SGC) expresses its disappointment with the
lack of alignment between Goldcorp CEO David Garofalo’s pay and
and the interests of Goldcorp’s shareholders. Since Mr. Garofalo’s
appointment as CEO on February 29, 2016, Goldcorp’s stock price has
fallen by 26%, while its peers, as measured by the GDX, have risen by
10% and the price of gold is up 4%. As CEO, Mr. Garofalo
received over Cdn. $16 million in aggregate compensation during 2016
and 2017 alone. His 2018 compensation is not yet publicly disclosed.
According to Goldcorp’s most recent information circular, Mr. Garofalo
now stands to make up to an additional approximately
Cdn. $11 million under his change of control provisions. While Mr.
Garofalo has been massively overpaid, stockholders have lost over
Cdn.$3.7 billion since his appointment, and Goldcorp now wants to sell
itself at only a slight premium to its 1,3,5,7 and 10-year
low in share price. The merger with Newmont is only a victory for
shareholders in as much as it eliminates another gold company with
executive incentives that are grossly misaligned with those of shareholders.