Impala Platinum CEO Terence Goodlace. Picture: MARTIN RHODES
Impala Platinum CEO Terence Goodlace. Picture: MARTIN RHODES

IMPALA Platinum CEO Terence Goodlace has again rejected a bonus or an increase to his salary, remaining one of the lowest paid CEOs of a major platinum company.

Mr Goodlace, who joined Implats, the world’s second-largest platinum miner, in 2012, has declined to increase his salary or agree to accepting a bonus since that time, narrowing the ratio of his remuneration to that of the lowest level underground worker to 37-times last year from 41-times in the previous year.

Other platinum companies do not include similar ratios in their annual reports, making it difficult to compare CEO salary packages on the basis of what the head of the company earns relative to underground employees, a matter that is often a point of friction between management and the unions when CEOs take home enormous amounts of money, particularly in difficult times.

In the year to end-June 2015, Mr Goodlace received R7.49m, little changed from the previous year’s R7.48m and the Implats annual report said his net after-tax pay was R3.6m, unchanged from the previous year.

"He remains resolute in his decisions based on low PGM (platinum group metals) basket prices and the financial crisis facing the platinum industry," the company said.

Lonmin CEO Ben Magara also eschewed a bonus and a pay increase last year and would face a similar lack of financial reward this year to end-September, said Jim Sutcliffe, the chairman of London-based Lonmin’s remuneration committee.

"I would like to emphasise that the committee and your management have been very conscious of the loss of value suffered by you, our shareholders. As you can see, the management’s readiness to sacrifice their own contractual entitlements in recognition thereof has been fulsome," he said in Lonmin’s recent annual report.

Mr Magara was paid a total of £579,758, a 2.5% increase on his 2014 package, with the increase coming from increased taxable benefits of a car allowance and private medical insurance. Previous Lonmin CEO Ian Farmer’s salary between 2009 and 2011 was more than three times what Mr Magara is being paid since joining in July 2013. In 2010, Mr Farmer received £1.8m.

Lonmin’s shares have hugely underperformed those of its peers as the company’s stock lost ground ahead of a dilutive and unpopular $400m rights issue late last year to recapitalise the embattled company.

Anglo American Platinum will release its 2015 annual report in February, but in 2014 CEO Chris Griffith received a total R18.5m, of which R7.4m was a basic salary.

Northam Platinum said in its 2015 annual report the average total pay for an underground employee including bonuses and allowances came to R160,894 that year. The basic monthly wage was R7,370, which compared to R4,160 in the manufacturing sector and R4,160 a month in the finance and transport sectors, Northam said, drawing on the National Minimum Wage Research Initiative in 2014 by Wits University.

Northam CEO Paul Dunne received a total of R8.7m.

At Aquarius Platinum, CEO Jean Nel received a total of $762,833 for the year, of which $164,638 was a cash salary.