Rosemont execs’ salary increase, stock compensation slashed

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In spite of Augusta Resource Corporation’s failure to obtain key permits for its Rosemont copper project in the Santa Rita Mountains south of Tucson, it increased the base salaries of its employees by two percent.

Augusta’s 2013 Management Proxy Circular issued last week in advance of the company’s June 20 annual meeting in Vancouver, B.C. states that stock compensation for Augusta’s top executives was slashed 50 percent in 2012 compared to 2011.

The company cited “delays in permitting for the Corporation’s Rosemont project” as one of the reasons for the sharp reduction in stock-based compensation.

Augusta CEO Gil Clausen’s base salary increased to $347,000, up from $338,340 in 2011. But Clausen’s total stock-based compensation fell to $663,048 in 2012, down from $1.54 million in 2011.

Similar reductions in stock-based awards resulted in lower total compensation for three other of Augusta’s top officers and employees including:

  • Richard Warke, Executive Chairman, $738,337 (2012), $1.33 million (2011)
  • Rodney Pace, Executive VP and Chief Operating Officer, $584,000 (2012), $1.05 million (2011)
  • James Sturgess, Senior Vice President, $490,461 (2012), $852, 945 (2011)

Despite the sharp reductions in 2012 compensation from 2011, Augusta’s top executives are still making about the same or more than they did in 2010.

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One Response to Rosemont execs’ salary increase, stock compensation slashed

  1. ALAN JOHNSON says:

    THE REVELATION AS TO THE FINANCIAL GAINS MADE BY THE SENIOR OFFICERS OF AUGUSTA ARE BASED ON THEIR PROMOTIONAL ABILITIES AND NOT THEIR TECHNICAL/FINANCIAL ABILITIES RELATED TO BRINGING A MINE INTO PRODUCTION . THEY ARE ABLE TO VOTE THEMSELVES BONUSES , STOCK OPTIONS , ETC AS THEY WISH . HAVING THEIR AUGUSTA STOCK COMPENSATION SLASHED BY 50% STILL LEAVES THEM AS WEALTHY MEN . REMEMBER , THEY ALSO SIT ON OTHER COMPANY BOARDS WHERE COMPENSATION IS PROVIDED . IT WOULD BE VERY INTERESTING TO KNOW THE TRUE ANNUAL FULL WORTH OF AUGUSTA’S SENIOR EXECUTIVES , TAKING INTO ACCOUNT ALL SOURCES OF INCOME . AUGUSTA GENERATES NO CASH FLOW FROM ANY OF THEIR ACTIVITIES UNLESS , HOWEVER , THEY ARE TRADING IN SHARES OF OTHER COMPANIES . HOPEFULLY , AT THE NEXT ANNUAL COMPANY MEETING IN VANCOUVER , THERE WILL BE STRONG OPPOSITION FROM SHAREHOLDERS OVER THE FAILURE OF SENIOR AUGUSTA MANAGEMENT TO SECURE FUNDING FOR THE PROJECT AS WELL AS THE DELAY IN PERMITTING . AUGUSTA IS OPERATING LIKE MOST OTHER CANADIAN RESOURCE COMPANIES WHERE SPECULATION IS A DRIVING FORCE . MAJOR MINING COMPANIES , EXCEPT FOR HUDBAY MINING , APPEAR TO BE STAYING WELL CLEAR OF AUGUSTA IN ORDER TO AVOID BEING DRAWN INTO A DAMAGING SITUATION WHERE CREDIBILITY AND REPUTATION ARE AT STAKE . IT IS AMAZING HOW SENIOR EXECUTIVES CAN BE SO RICHLY REWARDED FOR DOING SO LITTLE .