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Neal Froneman, the CEO and executive director of Sibanye-Stillwater, a South African multinational mining group, received a total compensation package of R198.03 million ($10.36 million) for his leadership of the precious metals mining company in 2022.
This figure represents a notable decrease of 32.1 percent when compared to his 2021 compensation of R291.58 million ($15.26 million).
The decline in Froneman’s compensation can be attributed to the slump in the group’s earnings. Sibanye-Stillwater faced significant hurdles in 2022, including industrial strikes, electrical supply constraints, and severe weather-related flooding that impacted operations in the United States. These challenges took a toll on the group’s earnings.
Despite these obstacles, the Sibanye-Stillwater demonstrated remarkable resilience throughout 2022. The company achieved its third-highest annual adjusted EBITDA, all amidst the backdrop of disruptions caused by the COVID-19 pandemic, increasing economic uncertainty, and diminishing levels of household disposable income.
Froneman, a highly respected executive within the mining industry, has played a pivotal role in the transformation of Sibanye-Stillwater. Under his leadership, the company has evolved from a small South African gold miner into one of the world’s most diversified metal producers, with a strong international presence.
With a wealth of experience in South Africa’s financial mining sector, Froneman has effectively led Sibanye-Stillwater since his appointment as CEO and executive director in 2013.
Froneman’s 2022 compensation includes a base salary of R13.82 million ($650,268) and a performance-based short-term incentive of R12.1 million ($631,251), linked to the company’s fiscal year performance.
The bulk of his compensation package, amounting to R198.03 million ($10.36 million), comes from a long-term incentive award of R162.3 million ($8.49 million), reflecting his unwavering commitment to the group and his extensive expertise as a seasoned industry professional.
Since assuming the role of CEO in 2013, Froneman has steered Sibanye-Stillwater toward impressive financial achievements despite the challenges encountered during the fiscal year 2022.
The group’s headline earnings declined from R36.9 billion ($2.5 billion) in 2021 to R18.4 billion ($1.1 billion) in 2022 due to a substantial 20 percent reduction in revenue, which fell from R138.3 billion ($8.4 billion) in 2021 to R172.2 billion ($11.6 billion) in 2022.
Despite the decline in earnings, Sibanye-Stillwater’s total assets expanded, increasing from R153 billion ($9.6 billion) in 2021 to R166.63 billion ($9.78 billion) by the close of 2022.
In addition to his executive and governance responsibilities, Froneman holds a minority stake of 0.3 percent, equivalent to 8,382,849 ordinary shares in Sibanye-Stillwater, a stake presently valued at $11.3 million.
