Due to its net loss of $5.77 billion for the 2013 financial year caused by $6 billion asset write-downs and restructuring costs, Newcrest Mining executives took substantial cuts in their pay package and bonuses.
Logo of Newcrest Mining Ltd.
As a result, the total remuneration of chief executive Greg Robinson shrank to $2.73 million from $3.69 million as his short-term incentives were removed.
Besides Mr Robinson, finance director Gerard Bond and other executive managers will not get pay hikes for the current financial year after the yearly pay review in October.
"The year was characterised by volatile external environment, including the steepest fall in the gold price for 30 years and a strong Australian dollar, a challenging operating environment and its impact on the company's balance sheet," The Australian quoted Newcrest.
In the previous year, Mr Robinson got $700,000 in bonus, which boosted his 2011-12 pay package to $3.69 million.
According to Newcrest policy, long-term incentives are computed over a three-year period and vest in November every year.
However, Newcrest still paid $544,000 in short-term incentives to executives, which is 85 per cent lower than the $3.69 million it paid to them the previous year.
In the same year, the share price of Newcrest plummeted to $10 from $23.50 due to missed targets and the significant drop in gold price. Its share price was also affected by a market closure problem in June, currently being probed by the Australian Securities and Investments Commission.
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