STAMFORD, Conn.–(BUSINESS WIRE)–Equinox Partners Investment Management, LLC, (“Equinox Partners”) a long-term value investor, today announced the launch of www.directorswithoutstock.com to amplify its investment stewardship policy. Equinox Partners will vote against directors who have served for two or more years but hold less than two years of director’s fees in the company’s stock.
The site lists directors of gold and silver mining companies in the MVIS Global Junior Miners Index (MVGDXJTR) who fail the firm’s stewardship policy and includes the director’s photo, name, company, total shares owned, value of shares owned, annual compensation, ratio of value of shares to compensation, and years on board.
Key results that are showcased on the website include:
– Of the 95 gold and silver mining companies in the index with readily available public filings, there were 590 directors, of which 125, or 21%, that failed the Equinox Partners stewardship policy.
– Of those 125 that failed, 37 owned no stock at all.
– Of those 37 that owned no stock, the average board tenure was 8 years.
– By eliminating the two-year minimum tenure constraint, 311 directors, or 53%, would fail the Equinox Partners policy.
By adopting a clear, lower-bound for director share ownership, Equinox Partners is pushing back on the growing indifference of boards to non-executive director stock ownership and the decision of some companies to prohibit non-executive directors from owning stock all together. Equinox Partners believes financially aligned directors are more likely to prioritize returns on and of owners’ capital. In comparison, the Canadian E&P industry is an example of a similar capital-intensive industry that has incentivized more insider ownership and prioritized disciplined capital allocation.
“Directors who lack any meaningful financial alignment with shareholders are going to tend to things that aren’t in the financial best interest of shareholders,” said Sean Fieler, President and Chief Investment Officer of Equinox Partners. “It’s crazy that a director would not have meaningful ownership of the company they direct. Insider ownership amongst the gold miners is worsening, as passive investors push board turnover that does not always align with the interest of shareholders. We hope our policy and this new site can be a step in a different direction.”
About Equinox Partners
Equinox Partners, headquartered in Connecticut is a long-term value investor with a large weighting in precious metals miners. Equinox Partners’ high conviction approach to fundamental investing involves a strong, active focus on corporate governance.
Equinox Partners Investment Management, LLC | Information as of 09.30.22 unless noted | SEC registration does not imply a certain level of skill or training
If a given Director would like to be removed from our list due to the purchase of their company’s stock, we would be happy to remove them in the next iteration. Similarly, if a Director believes the publicly available data as presented could be amended or clarified, they should contact us immediately.
The information contained on this website is being provided by Equinox Partners for informational purposes only and is not a solicitation of proxies for any purpose. Nothing contained herein is intended to be or should be considered investment advice or a recommendation by Equinox Partners to buy or sell any security including, without limitation, any security issued by a company named herein.
Equinox Partners and certain related persons and other entities holds a financial interest in certain companies identified above as an equity investor. However, unless otherwise stated, neither Equinox Partners nor any of its partners, directors or officers, or any directors or officers of any of its subsidiaries, or any 10% or greater shareholder of Equinox Partners, has beneficial ownership of, or director or control over, more than 1% of the issued and outstanding equity securities of any of the companies identified above, or any other financial or other interest in those companies.
Metrics for each company have been taken from respective company’s most recent proxy statement through September 2022. Pricing as of 9.16.22. Values may be rounded. All values are in USD. Compensation ratio is calculated using the aforementioned data, and is defined by the total value of shares divided by annual compensation. Only companies found in the GDXJ index as of 09.01.22 have been included in the analysis. List only includes those directors appointed before 2020 and who fail the specified policy. Best efforts were made to include all public filings into the analysis. A small number of companies did not have publicly available ownership and/or compensation information. Equinox Partners Investment Management, LLC, will seek to update this list at least annually.
Read More: Equinox Partners Launches www.directorswithoutstock.com to Improve Board Governance in Gold Mining