Photo by: Bloomberg
TORONTO (miningweekly.com) – US iron-ore and coal producer Cliffs Natural Resources on Friday reported that it expected to make a payment of $11-million to its former CEO Gary Halverson in connection with the termination of his employment.
Halverson was ousted as Cliffs CEO after only six months in the position, following activist shareholder Casablanca Capital’s win in a proxy contest through which it appointed its own CEO, Lourenco Goncalves, earlier this month.
Goncalves also replaced Jim Kirsch, who had served as chairperson since July 2013.
Casablanca, a New York-based fund manager that owns about 5.2% of Cliffs, last month won six seats of the 11-seat board, giving the investor the power to implement its agenda of change without hindrance.
Cleveland, Ohio-based Cliffs on Friday also announced another board change, saying Timothy Sullivan, who had served as a director on the board since January 2013, had resigned.
Cliffs also reported that it expected to make about $16.9-million in additional payments to satisfy its change-in-control obligations under awards previously granted to other officers and key employees that were payable despite them continuing employment.
The miner also cautioned that it might be liable for more payments of up to $40-million, but that it expected triggering events to be minimal and that it would expire in two years.