Newcrest bumps up CEO pay to $5.7m

Facing a second strike from shareholders over executive pay, Newcrest has lifted its CEO's remuneration package to $5.7 million.

Gold miner Newcrest has boosted its chief executive's pay packet to $5.7 million despite last year coming under fire from shareholders for excessive pay.

Close to half of Newcrest shareholders voted against the company's executive pay in 2013/14, meaning it faces a potential board spill if more than 25 per cent vote against its pay in 2014/15 under the so-called `two-strike' policy.

Sandeep Biswas, who started in the top job at Newcrest on July 4, 2014, earned a base salary of $2.3 million, up from the $1.98 million paid to his predecessor in 2013/14.

Mr Biswas also got a cash bonus of $1.66 million, plus $1.1 million in shares, some of which will be deferred for at least a year.

Share rights awarded as a long term bonus took his total annual remuneration to $5.65 million, up from the $4.5 million awarded to former chief executive Greg Robinson in 2013/14.

Mr Biswas also stands to receive $500,000 in Newcrest shares in November as part of a sign-on agreement struck in 2013 to lure him from his role as head of Rio Tinto subsidiary Pacific Aluminium.

The pay rise came as Newcrest enjoyed a massive financial turnaround, making a $546 million profit after the previous year's $2.2 billion loss.

In its annual report for 2014/15, Newcrest said Mr Biswas had a successful first year in the job, increasing production, cash flow and the company's share price and lowering costs and debt.

The company also acknowledged the death of three workers since December, which reduced the bonuses paid to executives.

Newcrest said it had made significant changes to its executive pay system in response to shareholder feedback, and its pay levels are set to attract and retain high calibre staff.

Its annual general meeting will be held on October 29.

Source AAP

Stay up to date with SBS NEWS

  • App
  • Subscribe
  • Follow
  • Listen
  • Watch