8-KLeadership Changes

NEWMONT Corp /DE/ 8-K Report, Executive Changes (Feb 12, 2007)

Filed February 12, 2007For Securities:NEMNEMCL

Summary

Newmont Mining Corporation (NEM) filed an 8-K on February 11, 2007, reporting significant changes in its executive and board composition. Notably, former President Pierre Lassonde entered into new employment and consulting agreements. The employment agreement covers a transition period from January 1 to April 30, 2007, with a specified monthly salary and exclusion from bonuses and stock options. This is followed by a consulting agreement commencing May 1, 2007, which includes a substantial severance payment upon termination, offering financial continuity and knowledge retention. Additionally, Seymour Schulich has announced his decision not to stand for re-election to the Board of Directors at the upcoming 2007 Annual Meeting. Mr. Schulich will continue his association with the company in a consulting capacity and as non-executive Chairman of Newmont Capital Limited. These changes, including a subsequent reduction in the Board's size, reflect strategic adjustments in leadership and governance for Newmont.

Key Highlights

  • 1Pierre Lassonde's transition from President to a new employment and consulting arrangement.
  • 2Employment Agreement for Pierre Lassonde from January 1, 2007, to April 30, 2007, with a monthly salary of $20,834.
  • 3Pierre Lassonde is not eligible for performance bonuses or stock options under the new employment terms.
  • 4Consulting Agreement for Pierre Lassonde commencing May 1, 2007, with annual renewal and a $20,834 monthly payment.
  • 5A lump sum payment of $750,000 is stipulated upon termination of the Consulting Agreement, unless for cause.
  • 6Seymour Schulich will not seek re-election to the Board of Directors at the 2007 Annual Meeting.
  • 7Seymour Schulich will continue as a consultant and non-executive Chairman of Newmont Capital Limited.
  • 8The size of the Board of Directors will be reduced from 13 to 12 members, effective April 24, 2007.

Frequently Asked Questions

Pierre Lassonde's employment agreement runs from January 1, 2007, to April 30, 2007, with a monthly salary of $20,834. He will not be eligible for performance bonuses or stock options during this period.

Commencing May 1, 2007, Mr. Lassonde will receive a monthly payment of $20,834 under a consulting agreement. This agreement will continue on a year-to-year basis unless terminated by either party. Upon termination for reasons other than cause, he will receive a one-time payment of $750,000.

The filing states that Mr. Schulich notified the Board of his decision to decline re-election at the 2007 Annual Meeting of Stockholders. Specific reasons for his decision are not provided in this 8-K filing, but he will continue as a consultant and in his role at Newmont Capital Limited.

Following Mr. Schulich's decision not to stand for re-election, and in accordance with company bylaws, the size of the Board of Directors will be decreased from 13 to 12 members, effective April 24, 2007.