Strategy and Governance

Executive Compensation

Over the past several years, the volatility in the mining industry has resulted in ongoing demand for executives with mining-related skills and experience. As a result, the attraction and retention of talented and experienced executives is one of the key objectives of our executive compensation program.

These six principles guide Goldcorp’s overall compensation philosophy:

Aligned
Transparent
Strategic
Competitive
Risk-
sensitive
Responsive
Goal 1:
Pay for performance
Goal 2:
Align interests
of management
with shareholders
Goal 3:
Attract, retain and inspire key talent
Aligned – We use equity-based incentives to align executives’ long-term financial interests with those of our shareholders
Transparent – Both executives and shareholders understand the executive compensation program – how it works, the goals it seeks to promote and the compensation levels and opportunities provided
Strategic – Reinforces our business strategy by linking key performance indicators to compensation in both annual and long-term components
Competitive – Ensures we can recruit and retain experienced, high-calibre executives in the highly competitive mining industry, while being fair and reasonable to our shareholders
Risk-sensitive – Supports the management of risk and ensures management’s plans are focused on generating shareholder value within a risk-controlled environment
Responsive – To the commodity-based cycle by emphasizing operational performance measures over performance measures that are more directly influenced by metals prices

The Board recognizes that executive compensation practices and policies are evolving in Canada and globally, and undertakes an annual internal review to ensure our practices and policies are effective in achieving our objectives.

We balance the need to be competitive within the mining industry to attract high-calibre executives with the need to provide compensation programs that are fair and reasonable.

Since 2012, we have provided shareholders with an advisory Say on Pay vote regarding our executive compensation program. It helps us engage constructively, obtain meaningful feedback and ensure accountability for executive compensation. For more information on executive compensation, please see our Management Information Circular.