Paladin Energy boss John Borshoff has been granted a contract extension, just over a week after the company moved to pacify angry shareholders by slashing his termination entitlements.
The uranium miner announced today that Mr Borshoff would continue as managing director and chief executive until December 2014, on an initial base salary of $1.3 million.
Mr Borshoff’s base salary will be increased to $1.53 million if the spot price of uranium equals or exceeds $US45 per pound for three consecutive months, as well as achieving a number of other performance measures.
Paladin released notes to shareholders last week which said Mr Borshoff’s severance package, which had been two times his base salary, had been halved.
Mr Borshoff has twice taken pay cuts in recent years – a 10 per cent cut in October to his current pay level, and a 25 per cent cut in December 2011, which took his base salary down to $1.53 million, from $2.04 million.
Paladin chairman Rick Crabb said in a statement to the ASX that the company’s board of directors recognised the “vital importance” of Mr Borshoff’s contribution to negotiations over a possible sale of a minority interest in its Langer Heinrich uranium mine in South Africa and its debt reduction initiatives.
The move comes after Paladin made a $US40 million loss over the three months to the end of September, despite record production at the Langer Heinrich mine.
Spot prices of uranium for the period traded around eight-year lows, with Paladin’s average realised price for the quarter coming in at $US41.38/lb.
At close of trade today, Paladin shares were down 3.7 per cent, at 39 cents.