Mining contractor Perenti has elected to undergo a significant remuneration restructure, on the back of February’s fatality at the Mana gold mine in Burkina Faso.
Mining contractor Perenti has elected to undergo a significant remuneration restructure, on the back of February’s fatality at the Mana gold mine in Burkina Faso.
As part of the restructuring, recommended by its board, several board members – including managing director and chief executive officer Mark Norwell – have had their overall remuneration packages reduced.
“The board recognise this loss (in Burkina Faso), and Perenti’s poor historical record of fatalities, and continues to ensure management take decisive action to achieve our goal of ‘no adverse life changing events’,” the company said.
“The board has taken action to reflect accountability for the incident in our remuneration outcomes in the 2024 financial year and commits to remuneration structure change in the 2025 financial year.”
On February 28, Perenti told the market an employee from its African Underground Mining Services subsidiary had died in an underground mining accident at Mana, which is owned by London-based Endeavour Mining.
Mr Norwell’s total remuneration package for the 2024 financial year dipped from $3.98 million to $3.12 million, while outgoing chief financial officer Peter Bryant took a cut from $1.61 million to $556,830.
The remuneration restructure mainly applied to both short-term cash payments and rights.
On May 20, Perenti told the market that Mr Bryant had resigned from his role as CFO, in order to take up a new role of the same nature at Perth airport.
Aside from helping the company find his replacement, Mr Bryant was expected to serve a six-month notice period.
Aside from February’s fatality, Perenti said receiving a first strike against the adoption of its 2023 remuneration report during last year’s AGM had also been taken seriously.
A total of 33.29 per cent of shareholders voted against adopting it.
“It was clear that the remuneration decisions disclosed in our 2023 remuneration report did not meet the expectations of some of our external stakeholders,” the company said.
“The board has taken a connected approach to addressing this feedback and made remuneration changes alongside enhancing our safety governance and system.
“No fatalities are ever acceptable in our workplace. The board is focused on, and committed to, continuous improvement.”
Perenti also released its results for the 2024 financial year, with the company generating a record $3.34 billion in revenue, up 16 per cent from the prior corresponding period.
Its underlying net profit after tax grew by 25.8 per cent, from $131.8 million to $165.8 million, while its statutory net profit after tax rose by $4.6 million to $107.2 million.
Additionally, Perenti’s profit attributable to equity holders slightly dipped from $95.73 million to $95.47 million.
The company has also declared a final dividend of 4c per share, fully franked.
“To offer our shareholders additional certainty, we are pleased to announce that the board has agreed to a dividend policy targeting a payout of 30-40 per cent of underlying NPAT during the years ahead,” Mr Morwell said.
As of 1.19pm WST, Perenti was trading at 99 cents, down 3 per cent.
