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As a former director, president and co-CEO of Goldman Sachs (GS*US), John Thornton had presumably developed a thick skin as well as a large wallet.
The uber-profitable U.S. investment bank - famously described as a "great vampire squid wrapped around the face of humanity" by Rolling Stone writer Matt Taibbi - has been a favourite target of critics on Wall Street and beyond even before the financial crisis shook the foundations of U.S. finance. (Thornton retired from Goldman in 2003.)
But Thornton may not have been expecting attacks over compensation when he ventured north of the border in 2012 to become a Barrick Gold (ABX) co-chairman with founder Peter Munk.
First, he had to backtrack two years ago on a lavish US$11.9-million signing bonus that took his pay package to US$17 million.
Then, at Barrick's recent AGM, Thornton was again forced to back down after shareholders - including Canadian pension funds - revolted over his 36% pay hike, voting no on "say on pay" and punishing Barrick directors who sit on the compensation committee.
For his part, Thornton assured shareholders he was aligned with their interests, saying that of the US$12.9 million he was paid in 2014, $7 million of it went to purchasing Barrick shares.
"I am aligned with you. I am one of you. I am you," Thornton told shareholders, according to a Globe and Mail report.
The Barrick boss has pledged to nurture a culture of share ownership at the Toronto-based gold giant, and he has upped his own skin in the game. Thornton has spent $5.16 million in the past 3 months on Barrick stock, about $7.5 million in the past year and $15.9 million in the past 2 years.
He owns, directly and indirectly, 952,600 shares - worth about $15 million - and has control or direction over a further 240,600 through family accounts.
Insider commitment at the Toronto-based company is helping boost its INK Edge outlook rating. The stock has moved into the top 10% of all stocks ranked based on insider activity, valuation and price momentum.
Once touted as a successor to Goldman CEO Hank Paulson, Thornton spent 23 years at Goldman and was brought in to Barrick in part for his international connections, particularly in China (he was chairman of Goldman Sachs Asia from 1996 to 1998).
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