Strong governance helps mitigate the threats and capitalize on the opportunities facing our business. Delivering our sustainability commitments requires robust policies and systems, clear accountabilities, and compensation practices aligned with sustainability performance – and benefits from strong oversight by our Board of Directors.
Our executive leadership team, under the direction of our Board of Directors, manages Newmont’s business and affairs, including our sustainability commitments.
Board of Directors
At all times, members of Newmont’s Board of Directors (the “Board”) maintain a sense of responsibility to our shareholders, customers, employees, suppliers and the communities in which we operate. Our Board’s mission is to ensure Newmont's long-term financial strength and to create enduring value for shareholders, employees and other stakeholders. The Board also plays a critical role in assessing major risks; ensuring high standards of ethical business conduct and compliance with applicable laws and regulations; and advising and approving the sustainability and overall business strategies.
Newmont's Board comprises 10 directors, including our President and Chief Executive Officer. The other nine directors – including Board Chair Vincent Calarco and Vice Chair Noreen Doyle – meet the criteria for independence set out by the New York Stock Exchange, the U.S. Securities and Exchange Commission and any applicable laws and regulations.
To ensure a diversity of viewpoints and experience, Newmont's Board represents a broad range of qualifications and interests. Among all members of our Board, 50 percent are diverse from a gender and ethnicity standpoint. With three female directors, our Board is among the top 20 percent of Fortune 500 companies for representation of women. On an annual basis, the full Board conducts self-evaluations and peer reviews and each committee performs annual evaluations to determine whether it is fulfilling its purpose and responsibilities and functioning effectively.
Four Board committees provide oversight and guidance in key areas – Safety and Sustainability, Audit, Leadership Development and Compensation and Corporate Governance and Nominating – and each has a written charter defining members’ roles and responsibilities.
The Safety and Sustainability Committee is charged with advancing Newmont’s efforts to provide a healthy and safe work environment, operate a sustainable business and ensure that environmental, social and geopolitical risks are managed effectively. This Committee is chaired by Joseph Carrabba and includes Jane Nelson and Gregory Boyce.
In 2015, the Safety and Sustainability Committee members met four times to consider a number of matters related to sustainability issues, risks, audits and performance including detailed updates on health and safety, closure and reclamation, security and human rights, energy and climate change, and public targets. Each meeting also included an in-depth review on one of our five regions. The Committee also reviewed and approved Newmont’s annual sustainability report.
Newmont’s President and Chief Executive Officer visits each region at least once during the year. Independent members of the Board also often participate in site visits to observe and assess implementation of our policies and standards on the ground. As part of the Board planning cycle, one full-Board site visit is scheduled each year, and in 2015 the Board visited our Boddington operation in Australia. Directors may also request individual or smaller group visits to any operation or project. For example, during 2015, the Safety and Sustainability Committee Chair Joseph Carrabba visited the Long Canyon project in Nevada prior to the Board’s full funding approval for the first phase of the project’s development.
For more information about the Board, please visit our website.
Below the level of the Board, primary responsibility for delivering on our strategy, including strong sustainability performance, rests with Newmont's Chief Executive Officer and his executive leadership team (ELT). The ELT, which has extensive operational and international extractive industry experience, has business – as well as personal – objectives against each pillar of the business strategy, including sustainability and external relations. Key roles are as follows:
Gary GoldbergPresident and Chief Executive OfficerHolds ultimate responsibility for Newmont's social, economic and environmental performance, and chairs quarterly health, safety and sustainability updates from global and regional team leaders.
Laurie BrlasExecutive Vice President and Chief Financial OfficerOversees the efforts to drive long-term financial performance and effectively manage risks.
Dr. Elaine Dorward-KingExecutive Vice President, Sustainability and External RelationsOversees the Company's sustainability strategy, including the technical and strategic environmental, geopolitical, social and human rights programs.
Randy EngelExecutive Vice President, Strategic DevelopmentIs responsible for Newmont’s strategy and business plan and optimizing the Company's portfolio through mergers, acquisitions and divestment opportunities.
Stephen GottesfeldExecutive Vice President and General CounselIs responsible for Newmont's compliance with applicable laws and regulations, corporate governance, and ethics and compliance program.
Scott LawsonExecutive Vice President, Technical ServicesOversees Newmont’s global supply chain as well as the functions responsible for delivering technology and innovation outcomes that drive sustainable competitive advantage and performance.
William MacGowanExecutive Vice President, Human ResourcesLeads Newmont’s human resources function and drives efforts to attract, develop and retain talent, strengthen global inclusion and diversity, and ensure workforce rights.
Chris RobisonExecutive Vice President and Chief Operating OfficerAlong with the Senior Vice Presidents of Projects and Exploration, the Vice President of Health, Safety and Security, and the Regional Senior Vice Presidents, is charged with delivering leading health, safety, social and environmental performance.
The ELT provides leadership, establishes priorities and delegates matters relating to sustainability to teams and individuals. The sustainability and external relations (S&ER) group plays a central role in developing and implementing management frameworks, auditing against requirements, and tracking and reporting on our performance on environmental and social matters. General managers at each operation play a critical role in implementing policies and standards on the ground. Other groups within the Company also assume direct sustainability management roles. These include health and safety, security, human resources, supply chain and risk management.
Executives are held accountable through Newmont's performance management program, which connects compensation to annual targets that are designed to advance our strategic objectives. Our bonus program for executives, as well as for our regional and site operational leaders, includes health and safety targets to lower accident rates, reduce exposures and develop control plans for top fatality and health risks. While regional bonus plans historically have included sustainability metrics, beginning in 2016, our corporate bonus program will also embed sustainability metrics related to achieving external targets for water, closure and reclamation, complaints and grievances, as well as performance on the Dow Jones Sustainability Index.
The Board’s Leadership Development and Compensation Committee has responsibility for the compensation of the Company’s key employees, including the Chief Executive Officer and the other executive officers. While Newmont exceeded targets and year-over-year safety results, because we experienced two fatalities in 2014, the Compensation Committee reduced the 2015 bonus payout for the safety measure. For our 2015 safety targets, even though the targets were met or exceeded, the 2016 payout will be similarly impacted due to the two fatalities.
Newmont holds an annual advisory vote on executive compensation to give shareholders an opportunity to approve, reject or abstain from voting on executive compensation programs and policies. More information on director and executive compensation and the process for communicating with the Board is reported in our annual proxy statement.