Bedford Group/TRANSEARCH publishes 15th annual industry-wide Report on Board and Executive Compensation in the Mining Industry
TORONTO, Nov. 19, 2024 /CNW/ - Bedford Group/TRANSEARCH has published its 2024 report on Board and Executive Compensation in the Mining Industry, spotlighting key trends and challenges reshaping the leadership and governance landscape. Drawing on data from 277 mining companies, including 1,100 Named Executive Officers and 1,700 board members, the report offers critical strategies for navigating a volatile market.
"Significant consolidation driven by financial constraints in the junior sector is transforming the mining industry," said Frank Galati, Managing Partner within The Bedford Group/TRANSEARCH's Mining Group. "Strategic leadership has never been more critical. Our report shows that effective compensation strategies – balancing competitive pay with performance-driven incentives – are key to attracting and retaining leaders who can steer through challenging times."
In today's fluctuating market, mining leaders need actionable insights to stay ahead. The Executive and Board Compensation and Governance Report provides guidance for recruiting and retaining the right talent to lead organizations through uncertainty. Changes in year-over-year compensation, equity and non-equity incentives, and total compensation at the board and executive level – all this and more is tracked to help organizations navigate market challenges and drive shareholder value.
Bedford's report shows upward pressure on CEO base salaries across all asset value tiers. The increase of 15.1% for CEOs and 17.7% for CFOs over the previous year, driven in part by senior leadership turnover, reflects the fierce competition for top talent in a shrinking market. The rise underscores the need for tailored compensation strategies that attract high-caliber leaders without negatively impacting shareholder value.
Base salary increases vary significantly by company size, ranging from 12% for companies with assets between $5 billion and $20 billion to 2% for those between $1 billion and $5 billion or exceeding $20 billion. There's no single solution for every organization though, rather this shows the importance of strategic, size-appropriate approaches to compensation in a competitive talent market.
Bedford's report highlights increasingly volatile markets, demanding improved alignment of leadership goals with shareholder expectations. With a 6% increased volatility in metal prices in 2024, and a second consecutive year of declining revenue for the world's top 40 mining companies, share performance is likely to be impacted. Effective performance-based incentives and compensation strategies will be key to mitigating these challenges and attracting leaders with the vision to drive long-term shareholder value.
Beyond compensation, lack of diversity in the boardroom and C-suite shows a missed opportunity for growth. Bedford Group/TRANSEARCH reports that while female board representation continues to slowly increase (up to 24.6%), the C-suite and Named Executive Officers have plenty of room for improvement. Female-identifying CEOs account for only 5.2% of the total, and 14.7% of NEOs. Changing governance policies to attract more diverse executives can help organizations better realize their goals by inviting a greater range of expertise into decision-making, and providing another avenue for tackling the current talent shortage.
Organizations preparing for 2025 can access the latest insights and data through Bedford's Executive and Board Compensation and Governance Report, available now on the company's website.
About 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 Group/TRANSEARCH
For further information: Frank Galati, Managing Partner & Compensation Practice Leader, +1 416 970 7600, [email protected]
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