CEO base salaries in the mining industry have increased by 15.1 per cent over the past year, according to a new report by executive search firm Bedford Group/TRANSEARCH. The rise comes amid significant consolidation and financial constraints in the junior sector, highlighting fierce competition for top talent in a volatile market.
“Significant consolidation driven by financial constraints in the junior sector is transforming the mining industry,” said Frank Galati, managing partner within Bedford Group/TRANSEARCH’s mining group. “Strategic leadership has never been more critical.”
The 2024 report on board and executive compensation in the mining industry analyzed data from 277 mining companies, including 1,100 named executive officers and 1,700 board members. It found that CFO base salaries also increased by 17.7 per cent over the previous year, driven in part by senior leadership turnover.
Base salary increases varied significantly by company size, ranging from 12 per cent for companies with assets between $5 billion and $20 billion to 2 per cent for those between $1 billion and $5 billion or exceeding $20 billion.
The report highlights the importance of effective compensation strategies to attract and retain leaders who can navigate challenging times without negatively impacting shareholder value.
Increased volatility in metal prices—up 6 per cent in 2024—and a second consecutive year of declining revenue for the world’s top 40 mining companies are expected to impact share performance, the report noted.
“Effective performance-based incentives and compensation strategies will be key to mitigating these challenges and attracting leaders with the vision to drive long-term shareholder value,” Galati said.
The report also pointed to a lack of diversity in the boardroom and C-suite as a missed opportunity for growth. While female board representation has increased to 24.6 per cent, female-identifying CEOs account for only 5.2 per cent of the total, and 14.7 per cent of named executive officers.
“Changing governance policies to attract more diverse executives can help organizations better realize their goals by inviting a greater range of expertise into decision-making,” the report stated.
Organizations preparing for 2025 can access the latest insights and data through Bedford’s executive and board compensation and governance report, available on the company’s website.
Bedford Group/TRANSEARCH, founded in 1980, is one of North America’s leading privately held executive search and talent strategy firms, with offices in Toronto, Oakville, Calgary and Boston. It is the North American partner of TRANSEARCH International, one of the top 10 largest executive search firms globally with 60 offices in 40 countries.
