DEFA14A: Newmont Expands Disclosure on Executive Performance Stock Unit Program

Newmont Corporation supplements its 2024 proxy statement to provide additional details on the 2023-2025 Performance Stock Unit (PSU) program for executives in response to shareholder requests.

Summary

• Newmont Corporation has filed a supplement to its definitive proxy statement for the 2024 annual meeting of stockholders.
• The supplement expands the disclosure of the 2023 to 2025 Performance Stock Unit (PSU) program for executives.
• This action was taken in response to a request for additional information from shareholders.
• The PSU program includes metrics for Sustainability (Executive Female Representation and Achievement of Scope 1 & 2 Carbon Emission Reduction Project Milestones) and TSR (Relative Total Shareholder Return).
• The executive female representation metric has a target of 38% by the end of 2025.
• Scope 1 and 2 carbon emission reduction project milestones involve advancing carbon reduction studies at the Boddington and Tanami mine sites.
• The TSR metric is measured against the 25th, 55th, and 80th percentiles.
• Following the acquisition of Newcrest in November 2024 Newmont has begun the process of reviewing and combining Scope 1, 2 and 3 data which includes rebaselining for 2018 and 2019.
• Work will be completed in 2024 to update the baselines and roadmaps to targets.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The company is responsive to shareholder requests and is focusing on sustainability, but there are also risks associated with achieving the set targets.

Positives

• Newmont is responsive to shareholder requests for more transparency regarding executive compensation.
• The PSU program includes sustainability metrics, demonstrating a commitment to environmental and social responsibility.
• The company is actively working on carbon emission reduction projects to meet its 2030 Scope 1 and 2 emission reduction commitments.
• The inclusion of executive female representation as a metric shows a commitment to diversity and inclusion.

Risks

• The executive female representation metric is described as an aspirational goal, and achievement is subject to compliance with applicable law.
• Failure to achieve carbon emission reduction project milestones could impact the PSU payouts for executives.
• The integration of Newcrest's data into Newmont's Scope 1, 2 and 3 emissions reporting may reveal unexpected challenges or require adjustments to existing targets.

Future Outlook

Newmont is working to update its baselines and roadmaps to targets following the acquisition of Newcrest, with work to be completed in 2024.

Industry Context

The inclusion of sustainability metrics in executive compensation aligns with increasing investor focus on ESG (Environmental, Social, and Governance) factors in the mining industry.

Comparison to Industry Standards

• Many large mining companies are now incorporating ESG metrics into executive compensation plans.
• Companies like BHP and Rio Tinto have similar programs that link executive pay to environmental and safety performance.
• The specific targets and weightings vary depending on the company's priorities and operational context.

Stakeholder Impact

• Shareholders benefit from increased transparency regarding executive compensation and sustainability initiatives.
• Employees may be impacted by the company's efforts to increase executive female representation.
• The company's carbon emission reduction efforts could positively impact the environment and local communities.

Next Steps

• Stockholders will vote on the proposals outlined in the proxy statement at the annual meeting on April 24, 2024.
• Newmont will continue to work on carbon emission reduction projects and track progress towards its 2030 targets.
• Newmont will complete the work in 2024 to update the baselines and roadmaps to targets following the acquisition of Newcrest.

Key Dates

Keywords

Proxy Statement, Performance Stock Unit, Executive Compensation, Sustainability, Carbon Emission Reduction, TSR, Newmont, Newcrest, Acquisition