Alta Zinc Ltd (ASX:AZI) has changed its board structure to reflect a corporate streamlining that will, combined with a remuneration review, deliver a 17% reduction of board and executive personnel costs on an annual basis.
This follows an independent review of the company’s non-executive and executive remuneration structure by BDO Australia, which was commissioned to provide an external benchmarking exercise in relation to Alta’s fixed remuneration and incentives.
As a result, executive chairman Alexander Burns will transition to non-executive chairman with effect from December 1.
“Committed and supportive”
Burns said: “Having observed the effectiveness of the current management team over the past year in what was a very challenging period, I am confident in their ability to deliver value for all shareholders through the realisation of our unique and strategic portfolio of mineral projects in northern Italy.
“I remain committed and supportive of the company as a major shareholder and as non-executive chairman”.
In this revised capacity, Burns will continue to have an active role in guiding the strategic direction of the company and remains a committed long-term shareholder and a strong supporter of the company and its management team.
The board has approved this change following the anniversary in September 2020 of the appointment of Geraint Harris as managing director and his demonstration of leadership and management expertise since his commencement with the company.
In line with the review and reduction in board size to four, non-executive director Campbell Olsen resigned from the board following the AGM.
He has taken this decision on account of his confidence in the current board and management team and due to his increased commitments with the newly-listed North Stawell Minerals as well as with Arete Capital Partners.
The board thanks Olsen for his “considerable contribution” to the company since joining the board and both Alta Zinc and Olsen recognise that this will in no way diminish the strong relationship with Arete Capital or Alta’s largest shareholder, the Victor Smorgon Group.
Funds to advance Italian exploration
Alta expects to achieve a 17% reduction in annualised corporate personnel cash costs as an outcome of these changes which will enable it to direct more funds to exploration activities in Italy.
The BDO benchmarking exercise has provided independent confirmation that Alta’s revised non-executive remuneration sits within the relevant market pay zone and that executive remuneration is market competitive within a market median pay related range.
This benchmarking used the BDO board and executive remuneration database which surveys remuneration practices from more than 1,800 ASX companies.
Data for this assignment was utilised from all ASX mining companies with a market capitalisation of about $25 to $65 million, representing 95 companies.