Barrick’s Oliphant receives sweet sendoff

Dry any tears you may have shed for Randall Oliphant, unceremoniously dumped in February from his position as president and CEO of Barrick Gold.

While that move was widely viewed as Oliphant’s punishment for the company’s flatlining share price, Barrick has now revealed it gave Oliphant a US$6.4-million severance package consisting of the following: US$4 million in salary, bonus and pension components; US$1.8 million in restricted share units, which vest and become payable after three years; and US$575,000 in other pension amounts.

Oliphant is also allowed to keep all his stock options until 2006, and he’ll continue to receive certain unspecified benefits. Furthermore, he has been hired on as a consultant to Barrick for 18 months at a wage of US$8,125 per month, or US$146,250 in all.

In 2002, Oliphant received a base salary of US$700,637 (up from US$655,738 in 2001) and US$165,308 in “other compensation” (down from US$226,672 in 2001).

He was also granted 300,000 stock options in 2002, exercisable at C$23.85 each (shares currently trade at C$22.) No stock options were granted to him in 2001, but he did receive 11,424 restricted share units that year; these are now valued at US$1.7 million.

Oliphant did not receive a bonus in 2002, but he did receive bonuses of US$708,197 and US$821,918 in 2001 and 2000, respectively.

Oliphant was Barrick’s highest-paid executive in 2002, ahead of Chairman Peter Munk and Chief Operating Officer John Carrington, who both took home salaries of about US$554,000.

At March 2002, Oliphant held 10,200 Barrick shares directly or indirectly, while, as of March 15, 2003, Munk and Carrington held 1 million and 2,700 shares, respectively. Neither Munk nor Carrington received bonuses in 2002.

Former Canadian prime minister Brian Mulroney, with only 1,000 shares, was the Barrick director holding the least number of shares at March 15, 2003.

During 2002, Barrick posted a profit of US$193 million on revenue of US$2 billion. The company produced 5.7 million oz. gold last year, placing it third behind Newmont Mining and AngloGold.