CEO 'to waive bonus'

Gold Fields CEO Nick Holland offered to forgo his bonus after an investigation into a BEE transaction at the company's South Deep mine, Gold Fields said yesterday.

"In recognition of the concerns [about] the BEE transaction relating to South Deep, chief executive Nick Holland has offered to waive his bonus in respect of the 2013 financial year end," Gold Fields said.

The investigation revealed that the way in which the transaction had been handled was not consistent with the company's standards.

The Gold Fields board initiated the investigation into the transaction in December after it was questioned in media reports.

In March, Business Day reported that Gold Fields' former chairman, Mamphela Ramphele, had said that the government had shoved a list of BEE shareholders down the company's throat, with an ultimatum that, if the favoured names were not taken on board, it would be denied a mining licence.

The deal resulted in members of the politically connected Invictus Gold acquiring a 9% stake in South Deep mine at a cost of R1.1-billion in 2010, Business Day reported. The newspaper said that Gold Fields had not released the names of all 73 of the Invictus Gold shareholders who gained shares, which led to the deal being characterised as "secretive". The names of only 18 Invictus Gold shareholders have been made public.

Also in March, Bloomberg reported that Gold Fields increased Holland's pay by more than a third, though the company had lost R14.5-billion in market value.

Holland's pay climbed 38% to R45.3-million a year, of which R9.3-million was basic salary, according to the company's annual report on its website.

He also made R24.3-million in share pay-outs originally awarded to him in 2009.

The final report of the board's investigation found that the transaction had benefited Gold Fields.