The C$238.8 billion ($194.9 billion) Canada Pension Plan Investment Board, C$154.4 billion Ontario Teachers' Pension Plan and C$114 billion British Columbia Investment Management Corp. said they will vote against Barrick Gold Corp.'s non-binding say-on-pay vote for its executive compensation.
Also, CPPIB and Ontario Teachers, both based in Toronto, are also withholding votes for J. Brett Harvey, lead director and chairman of the Barrick board's compensation committee, according to statements on the pension funds' websites.
The board's compensation committee did not provide “full and complete disclosure” and “concrete linkages to performance” when Barrick Chairman John Thornton was given a 36% pay hike in 2014, OTPP said on its website.
On its website, Victoria, British Columbia-based BCIMC said the compensation program “does not align pay with performance. Furthermore, the compensation committee has demonstrated low responsiveness to shareholders' concerns following two years of relatively low support on the say-on-pay votes.”
The CPPIB did not provide further comment on its vote. The three pension funds combined own less than 1% of Barrick shares. The Barrick board will hold a special meeting April 30.
Barrick spokesman Andy Lloyd said: “We’re measuring our leaders against a long-term scorecard designed to drive superior returns for the company’s owners under wide-ranging market conditions. We’re also rewarding performance with common shares that must be held until retirement from the company. The result is that our leaders’ personal wealth is tied to the long-term success of the business, such that they are 100% incentivized to build long-term value for fellow owners.”