Published: 17 September 2013

Aquarius Platinum has cut its chief executive Jean Nel's salary by 30% and imposed a 10% slash of directors' fees as part of measures to contain "cash corporate costs".

The platinum group metals producer, which jointly owns Zimbabwe based Mimosa Mining Company with Implats, yesterday announced that it was devising a "range of initiatives designed to reduce operating costs and conserve cash resources during the present difficult operating environment."

Nel has volunteered to take 70% of his salary and any bonuses he may earn over the next three years in Aquarius shares instead of cash.

The move is one of a number announced on Monday by the platinum junior aimed at reducing its corporate costs by more than 50% to below $6m (about R60m) a year.

In other measures, the Aquarius nonexecutive directors have agreed to a reduction of 10% in their directors’ fees and offered to take 25% of their remaining fees in shares instead of cash.

In addition to taking 70% of his salary in shares Mr Nel has also, for the second consecutive year, asked not to be considered for a salary increase in 2014.

The Aquarius board said it believed "implementation of the directors/employees share plan, the proposed reduction in the cash component of Mr Nel’s salary and the proposed amendments to nonexecutive directors fees demonstrate an acknowledgment of the difficult operating conditions and need for restraint".

"It also demonstrates a further alignment of the company and its key executives; a reduction in cash outflows at a time when corporate costs are being restructured; and the long-term objectives of the company and its shareholders."
- businessday

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