CBIS stands up against excessive compensation

CBIS stood with large numbers of Anglo American’s shareholders in voting against a lucrative compensation package for the company’s CEO. Bloomberg News noted that it was a sign of “growing dismay” on the part of shareholders given the rout in commodity prices and the company’s plans to cut tens of thousands of jobs in a restructuring. “In light of the mining closures, the financial losses and the 85,000 workers who will lose their jobs, this is no time for an outsized pay package,” said Julie Tanner, Director of Catholic Responsible Investing at CBIS, “While we applaud CEO Mark Cutifani’s vision for mining as an industry that acts as responsible, reliable partners for both local communities and the environment, the remuneration committee of the board must look to restore profitability, ” According to Bloomberg News, Anglo reported a $5.6 billion net loss in 2015, following a loss of $2.5 billion the previous year. Their shares dropped nearly 70% in 2015. In 2015, CBIS traveled with faith-based leaders to Anglo American’s Venetia diamond mine in South Africa to meet corporate staff, communities, civil society organizations and workers.

Shareholders rejected CEO pay packages in the oil sector as well: BP CEO Bob Dudley’s pay package of $19.6m was rejected by investors at a shareholder meeting last week. CBIS also voted against the measure. Bloomberg News reported that the oil giant said 59% of shareholder votes were against the company’s compensation decisions in 2015. For the year, BP lost $5.2 billion.