The news that Goldcorp (GG -0.5%) Chairman Ian Telfer stands to pocket $12M in the company's sale to Newmont Mining (NEM -0.6%) - nearly 3x the amount that had been reported as his retirement package before last week - has Goldcorp investors spitting fire.
The Shareholders Gold Council, formed by institutional investors last year to agitate for more alignment of corporate performance and executive pay, blasts the windfall as "another showcase example of directors choosing cronyism over the interests of shareholders."
The Globe and Mail's Jeffrey Jones says the boards of the two companies risk shareholder revolts if they do not revisit the lavish award, billed in the takeover documents as a retirement allowance, even though Telfer will have a role at NEM as deputy chairman.
Separately, GG says a strike at its Cerro Negro mine in Argentina has forced a halt to operations at the site.
Jefferies analyst Christopher LaFemina expects a quick resolution since GG is unlikely to want to draw negative attention before the NEM merger vote next month.
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