Using a phantom share scheme arrangement, Impala Platinum (Implats) converted a cash payment due to outgoing CEO Terence Goodlace into "share equivalents" vesting over three years, so the amount he gets will depend on the performance of the platinum company’s share price over the period. Goodlace and the board resolved to do it this way, rather than him being given a "cash retention award". It is a method that exposes executives to the share price of the company, so is perhaps a better way to align the incentives of CEOs with those of shareholders than making a cash payment. It also ties in well with Goodlace’s particularly socially conscious way of running the company. Almost uniquely among its peers, Implats published how Goodlace’s salary compared with the wages of the average mine worker, for example. Goodlace, who joined the company in 2012, once again declined an increase or bonus earlier this year, which narrowed the ratio of his remuneration to that of the lowest-level under...
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