Pay cuts for Aquarius Platinum's bosses

Among these initiatives is a plan for the chief executive to receive about 70% of his salary and any applicable bonuses in shares instead of cash.

The company said on Monday (16 September) that the non-executive directors had agreed to a reduction in fees of 10% and offered to receive 25% of their remaining director fees in shares in lieu of cash.

This is subject to regulatory and shareholder approval at the annual general meeting to be held in November.

"The number of shares would be calculated by dividing 25% of the residual fee by the simple average of the share price over the preceding calendar quarter. The first affected payment would be due at the end of March next year," the company said.

In terms of an unsolicited proposal which chief executive Jean Nel submitted to the board in July‚ he offered to take 70% of his salary and any applicable bonuses he may receive over the next three years in shares instead of cash.

The number of shares to be issued will be fixed at 708‚000 a year and set at US$0.62 per share.

In addition‚ Nel has‚ for the second consecutive year‚ asked not to be considered for a salary increase in 2014.

Aquarius's remuneration committee and board‚ after having taken legal and governance advice‚ unanimously approved the proposal‚ subject to shareholder approval.

The board said it believed the implementation of the directors and employees share plan‚ the proposed reduction in the cash component of Nel's salary and the proposed amendments to non-executive directors' fees demonstrated an acknowledgment of the difficult operating conditions and the need for restraint.

"With these and other corporate cost-saving initiatives‚ Aquarius's cash corporate costs have been reduced by more than 50%‚ to below US$6m a year‚" the company said.