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Paladin uranium’s losses, but its CEO does very well financially

Paladin boss earnings increase while Kayelekera cut jobs http://www.nyasatimes.com/2013/02/14/paladin-boss-gets-massive-pay-hike-after-malawi-job-cuts/ By Nyasa Times Reporter February 14, 2013 Despite uranium miner, Paladin Energy limited claiming that its Malawi operations in the northern district of Karonga at Kayelekera are operating on massive losses and that world uranium prices are low, the company’s managing director John Borshoff  elected to cash in his leave entitlementment, Nyasa Times has established.

Paladin’s annual report reveals that despite Borshoff  honouring a promise to cut his salary by 25% between November 2011 and November 2012 – a promise he extended to June 2013, the CEO was able to boost his remuneration after a review of annual leave entitlements thereby pocketing a 52% rise in earnings. The review focused on annual and long-service leave in a bid to cut Paladin’s liabilities, and Borshoff responded by cashing out 220 days of leave.The transaction approaved by the remuneration Committee and the board netted  Borshoff $1,717,000 and helped increase his remuneration to $3,464,000, from $2.26 million in 2012.

The uranium miner recently retrenched 110 staff from its Kayelekera mine in Malawi in an austerity drive which others commentators fault Boshoff for excercising his right to cash in the leave entitlement when local staff just had their calls for a 66 per cent pay rise rejected.

”Its total mockery to the Malawian workers at Kayelekera who were retrenched but have not had their benefits yet. These people are suffering. That’s a wake-up call to Malawi Government that Paladin is making profits despite plunge in prices” Karonga Business Community Chairperson Wavisanga Silungwe said in a statement made available to Nyasa Times.

“While production has gone up, the uranium price has not; hence Kayelekera continues to operate at a loss. We had warned government that this situation was unsustainable and would lead to job losses unless the uranium price improved, which it has not,” said Paladin’s (African) Ltd General Manager, international affairs, Greg Walker.

Walker said the staff reduction is in “response to economic pressures on the company caused by the continuing depressed uranium price” Borshoff’s contract with Paladin has one year left, and provides him with three months’ long-service leave for every five years of service. He is entitled to two years of double base salary when he retires or has his employment terminated.

July 5, 2013 - Posted by Christina Macpherson | business and costs, Malawi, Uranium