Mining Industry CEO Salaries Rise, But Gender Diversity Stagnates

Chief executive base salaries in the mining sector saw increases ranging from 2% to 12% in 2023, according to the Bedford Group/TRANSEARCH’s 2024 Board and Executive Compensation Report. Companies with assets under $100 million reported a median CEO salary of $251,988, while those with assets exceeding $20 billion paid a median of $1,900,978. Despite these gains, gender diversity remains limited at the top. Only 5.2% of CEOs identified as female, a slight improvement from 4.1% in 2022 and 3.7% in 2021.

The report noted that rising base salaries are driven by increased competition for skilled leaders capable of managing financial instability. Last year’s highest-paid mining CEO was Laurenco Goncalves of Cleveland-Cliffs, who earned $35.34 million. His compensation included a $2.9 million base salary, $16 million in equity-based pay, and a $13.7 million bonus. Richard Adkerson of Freeport-McMoRan followed with $32.4 million, comprising a $2.4 million salary, $16.9 million in equity, and $4.3 million in bonuses. Leon Topalian of Nucor ranked third, receiving $30.4 million, with a $2 million salary, $18.8 million in equity compensation, and a $6.8 million bonus.

CEO turnover also rose, with 15.1% of companies replacing their chief executives in 2023, compared to 14.4% in 2022. This increase reflects ongoing challenges in retaining top leadership, the report explained.

Retention pressures contributed to higher base salaries, particularly among mid-tier companies with $1 billion to $20 billion in assets, where median total CEO compensation increased by 22% to 24%. However, overall total compensation decreased in five of the seven asset tiers examined. For firms with assets under $1 billion, median CEO pay declined by up to 11%, primarily due to smaller equity grants amid constrained market conditions.

The report analyzed data from 277 mining companies listed on the TSX, ASX, Nasdaq, and NYSE, covering more than 1,100 named executives and 1,700 board members. For firms with under $100 million in assets, median total CEO compensation, including salary, bonuses, and equity, stood at $341,000. In contrast, companies with assets exceeding $20 billion had a median total CEO pay of $9 million.

Despite the general rise in base salaries, the report highlighted the persistent gender disparity in mining leadership. Women hold just 5.2% of CEO positions and 13.5% of named executive roles, a decline from 14.7% in 2022. Female representation on boards increased slightly, reaching 24.6%, up from 21.8% the previous year. However, only 9.2% of board chair roles are occupied by women.

The report pointed to shifting market dynamics as another factor influencing compensation trends. Smaller companies faced challenges from declining equity-based compensation, driven by reduced investor interest in exploration and development projects. In contrast, larger firms utilized performance-based incentives, aligning CEO pay with shareholder returns. For firms with assets above $20 billion, nearly 70% of total CEO compensation came from bonuses and equity awards.

The report urged mining companies to implement equitable pay-for-performance frameworks and to take steps to reduce barriers to gender diversity in leadership roles.

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