CONCLUSION: Jamie Sokalski CEO of Barrick will be stepping down effective sept 15th. No replacement has been announced yet. This is a surprising announcement. Could it be a prelude to splitting the company as some speculate? Or a disagreement on strategy with the Chairman John Thornton? Interesting that the company has two co-Presidents now.
More later, in the meantime stock likely to trade sideways till we hear more specific news. Company is due to report its 2Q earnings on July 30th.
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BN 07/16 13:22 *CORRECT: BARRICK PROMOTES AL-JOUNDI TO SR EVP, CFO
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Barrick Announces New Executive Management Structure
2014-07-16 13:20:27.971 GMT
Barrick Announces New Executive Management Structure
TORONTO, ONTARIO -- (Marketwired) -- 07/16/14 -- The Board of
Directors of Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) (Barrick or the "company") today unveiled a new executive management structure that will enable the company to meet the distinct demands and challenges of the mining industry in the 21st century.
Kelvin Dushnisky, currently Senior Executive Vice President responsible for Corporate and Government Affairs and Chairman of African Barrick Gold plc, and Jim Gowans, currently Executive Vice President and Chief Operating Officer, will be appointed Co-Presidents with overall responsibility for execution of the company's strategic priorities and operating plans. This model reflects the interconnected nature, and strategic importance of jointly managing day-to-day mining operations and the company's relationships with host governments, local communities and other external stakeholders. As Co-Presidents, Messrs. Dushnisky and Gowans will be responsible for the seamless execution of both functions at all times.
Ammar Al-Joundi will be promoted to Senior Executive Vice President and Chief Financial Officer and will also work closely with the Chairman on the development and execution of strategic initiatives.
Darian Rich will become Executive Vice President, Talent Management, a new position that reflects the critical requirement that any company seeking to be the leader in its field must attract, retain and develop exceptional people.
In conjunction with this restructuring, President and Chief Executive Officer Jamie Sokalsky will be stepping down effective September 15, 2014. In the interim, Mr. Sokalsky will assist in facilitating a smooth transition to the new leadership structure.
"These structural changes put an even greater emphasis on operational excellence, and will accelerate our portfolio optimization and cost reduction initiatives, while fostering a partnership culture both inside the company and externally," said Chairman John Thornton.
"Internally, that means our people will be financially invested for the long-term in Barrick's success, and personally committed to a culture of teamwork that balances individual and collective responsibility and accountability. Externally it means building enduring partnerships with the key stakeholders who are central to our success, including long-term investors, host governments, local communities and NGOs."
"On behalf of the entire Barrick team, I would like to thank Jamie for his many contributions to the development and success of the company over 20 years," added Mr. Thornton. "The changes we are announcing today build on the operating model that Jamie and his team implemented over the past year, setting the stage for us to move forward as a nimble, more versatile company focused on shareholder returns."
During his tenure as CEO, Mr. Sokalsky introduced a strategy to prioritize returns and free cash flow over production growth and led a company-wide portfolio optimization program. He also spearheaded successful initiatives to reduce costs and strengthen the company's balance sheet.
"I'm fortunate to have worked with so many great people over my career at Barrick and I'm particularly proud of what we have been able to accomplish over the past two years with the support and dedication of the entire Barrick team," said Mr. Sokalsky. "It is now time for the next phase of the company's development. I believe our new management structure will allow Barrick to address successfully the key challenges facing the mining industry today, and in turn, will position the company to deliver superior returns to its shareholders in the future."
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