Compensation and benefits
Kinross’ compensation programs are designed to meet five basic principles:
- Pay for performance
- Consistency and fairness
- Transparency and clarity
In 2012, Kinross provided total wages and benefits company-wide of $675.4 million and, in 2013, we provided wages and benefits of $720.7 million.
In each region, our aim is to achieve alignment with local market practices. We regularly review local market compensation data to ensure we provide a total package that remains fair, competitive and well positioned to attract and retain the best talent, targeting total compensation approaching the 75th percentile. In all countries we evaluate compensation levels to ensure that they are at least equal to or above the minimum living wage.
For employees in management, technical, professional and administrative roles (representing 18% of Kinross’ global workforce), total compensation is linked to individual performance. This includes behavioural aspects of performance including evaluation against Kinross’ four core values.
Senior executive compensation is closely linked to both personal and overall Company performance. A high percentage of total executive compensation is in the form of incentives which are “at-risk”, and awarded based on Kinross’ performance. In addition, our executives generally receive over 50% of their total direct compensation in the form of equity, with the value they “realize” being contingent on future Kinross share performance.
The package offered to our employees globally usually includes access to extended health coverage, life insurance, disability insurance and other benefits aimed at protecting and enhancing employee health and well-being.
Our employee share purchase plan is available to regular employees based on what compensation makes sense in their local market. Our employee share purchase plan has been available to Canadian- and U.S.-based employees, and expatriates in our global employment organization. In 2013, we extended our employee share purchase plan to employees in Ghana. In all such countries, employees can contribute up to 10% of their wages, with the Company matching up to 50% of each employee’s contribution. The plan was modified in 2012 to provide greater flexibility to employees to make changes to their contribution levels during the year, and to allow the Company to purchase shares on the open market for this plan, which reduces the dilutive impact of the plan.
The Company also administers retirement and/or savings plans in line with local market practice in the countries where we operate. Kinross does not currently have any active defined benefit plans in place.