Dalik explained the context for some of the higher earnings among CEOs in the mining sector:
“To hold those people through this long investment period is a real challenge, and the market views it that way,” Dalik said. “‘Are we at risk?’ is a question they have to ask of losing that person. They have to weigh that because … these questions are going to come up: ‘How is it going to look to shareholders? Well, it’s going to look worse if we lose them – and he’s a key resource going out the door.’”
If shareholders think mining company CEOs are overpaid, they should take a look at what Hollywood pays the CEOs of film and TV companies. David Zaslav, CEO of Discovery Channel, received US$156 million in 2014. His pay was skewed by a long-term contract signing bonus. He made US$33 million in 2013.
“What we call the talent industry – the athletes and Hollywood – they are unique industries unto themselves, so you really cannot compare them to anyone else,” Dalik said. “It’s just its own market unto itself.”
You can read the full piece with Dalik’s commentary here.