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1. Surveys of Competitive
Compensation in the Mining Industry - Major U.S. Diversified Mining Company
We conduct numerous surveys of competitive compensation in the mining industry
for clients who want to make use of our (1) knowledge of management jobs,
(2) knowledge of industry compensation practices, (3) access to survey participants,
and (4) industry compensation database. (110-93)
2. Benefit Plan - Initial Implementation - Major Precious Metals Development
Company
Our client was a start-up mineral exploration and development company in the
process of recruiting three senior management executives (plus a director).
The company needed a fringe benefits package that reflected competitive practice
in the mining industry and met the needs of the new management being recruited.
It also needed a base salary structure that could be used by the new management
to administer base compensation in the future while reflecting the competitive
needs in the mining industry. A&S had previously conducted an informal
compensation survey; and developed an interim structure for base salaries
and fringe benefits. The A&S assignment was the initial implementation
of the recommended benefits and compensation plans.
For this work, A&S used a team of five consultants. The work included
making arrangements for temporary medical coverage and identifying options
for decision by the client on life insurance, medical and related benefits,
retirement, savings plan and other aspects including vacation and holidays.
(735-7)
3. Development of Executive Compensation Plan - Major International Industrial
Company, U.S. Subsidiary
Development of an executive incentive compensation plan for the management
of a newly formed U.S. company that had been formed by a major international
heavy industry firm to distribute its products in the United States. The plan
was intended to be attractive to the management the company wished to recruit
and to provide a meaningful incentive for a continued profitable performance.
(334-2)
4. Out Sourcing Consultants' Compensation Study - International Fuels Supplier
Survey of rates for contracted minerals, exploration and development services.
We surveyed a group of exploration consultants for purposes of providing our
client with an understanding of billing practices in the industry, which he
then used to developed demonstrably competitive rates and practices for his
in-house consulting staff. (331-1)
5. Compensation Counseling for a Large Coal Company - Major Coal Mining
& Waste Management Company
Our client was a large coal company that had been newly formed as a consequence
of a merger and was introducing a new management structure significantly different
from either the former structure or typical organization practice in the industry.
We advised the client on establishing a compensation structure that best fit
both the unique organization and competitive practice in the industry off
a database that combined a multiclient study in which the client had participated
and spot checking of competitive practice for specialized positions. (338-3)
6. Review Purchase Offer Representatives of Acquirer's Legal Counsel
Determination of competitive compensation for the senior executives of an
acquisition target (at the request of an intermediary - the client was unknown
to us). We provided competitive compensation data for the executives of a
large metals mining firm that was an acquisition target of another firm. Our
client used the information to establish reasonable future compensation agreements
and/or severance arrangements that were necessitated by the transactions.
(684-1)
7. Human Resource R&D Program - Major International Mining Company
Identified on a totally confidential basis without anyone knowing that inquiries
were being conducted, for a viable potential candidate for the position of
CEO of a 49%-owned subsidiary of the international mining company. The work
involved dozens of discussions with people involved with the coal industry
ranging from people in operations, engineering, marketing, producers, as well
as people as customers, suppliers, and professional firms. The output was
a comprehensive listing and evaluation of potential candidates for the position
of CEO in the event that our client elected to recommend to the Board that
the CEO be replaced. (223-3)
8. Development of Management Bonus Plans - Major Electric Utility, Coal
Subsidiary
We develop specially tailored bonus plans to meet client objectives, reflect
competitive practice, and reflect the unique business and operating management
characteristics of the mining industry. On many assignments we combine our
personnel service skills with those of our management control consultants
to provide the client with a bonus plan which combines goal setting with performance
measurement for bonus purposes. (226-5)
9. Appraisal of Candidates for Accountancy Position - Small Oil & Gas
Investment Company
Appraisal of Candidates for Chief Accountant for an Oil and Gas Project in
Western Kazakhstan. Our client was the joint venture partner in its role as
owners' representative for an oil and gas project in Western Kazakhstan. A&S
was retained to provide an independent judgment on the qualifications of two
candidates for chief accountant of the joint venture enterprise.
The A&S assignment was to:
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Prepare a brief specification of the position; |
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Interview and evaluate each candidate against the requirements in the job specification; |
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Obtain references, contact them, develop their inputs and prepares written summaries of their comments about the candidates; |
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Verify principal educational credentials; |
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Analyze the information about the candidates to arrive at judgments concerning capabilities, qualifications and fit for the position. |
This joint venture project
was a development oil and gas project in Western Kazakhstan with a field estimated
to contain about 200 million barrels of oil equivalent. There were currently
seven experts and close to 90 Kazakh national employed. Development plans
included a series of work-overs and recompletion of wells to deeper horizons.
The field was producing gas from a gas cap underlain by stacked oil reservoirs.
The foreign contribution of a charter fund of US$20 million has been matched
by the Kazakh contribution of the field. The foreign consortium included OPIC,
a Panamanian subsidiary of Chinese petroleum Corporation; The Taiwanese National
Oil Company, Naptha; and Tenge Development LLC, a Texas limited liability
company including three American investment groups, a Turkish company and
a Turkish company with important contacts in Kazakhstan. (696-3)
10. Competitive Compensation Study - Medium-Sized Hard Rock Mining Company
Developed a job grade and salary structure for a hard rock mining company
to provide for more disciplined compensation administration and to assure
that lower management salaries were competitive. (304-7)
11. Exploration Unit Compensation Study Major - Australian Mining Company
This project involved reviewing the company's analyses as regards to setting
up an exploration office in Chile. It involved review of all the data, its
interim personnel, as well as holding discussion with a number of other mining
exploration company personnel in Chile (comprised of Chilean and non-Chilean
personnel). The output of the work comprised our views and was given directly
to our client's top management. (716-2)
12. Sponsor and Operator
Analysis - Consortium of Banks
This assignment, one of a number by an international banking consortium,
consisted of identifying potential replacements for the sponsor and operator
of a large Australian coal project. In the course of the work, we determined
the ideal specifications for an alternative operator, identified the desirable
targets worldwide, and through contacts with our own sources verified the
interest of a number of these companies. (699-5)
13. Review of Fuel Supply Practices and Procedures - South African National
Electric Utility
Conducted a management policy and procedures review of the fuels supply function
for one of the world's largest coal-based electric utilities. The work involved
reviewing business strategy, coal supply agreements, approaches to performance
measurement of its coal suppliers, and the company's interface with its Government.
Our report was given to top management and focused on improving approaches
to strategic development; management structure, arrangements and staffing;
and coal supply agreements. (730-1)
14. Management Succession Planning - Industrial Minerals Company
This assignment was an update of one completed five years previously. It was
activated as a result of the disability of the President of the company. It
entailed determination of the management requirements, development of alternatives,
evaluation of each, and providing recommendations on final candidate selection.
(253-17).
15. Evaluation of Coal Supply Source - Major Electric Utility
A&S was retained in response to a Public Service Commission inquiry to
determine if a utility's purchases of high-cost coal from its subsidiary was
cost-effective. The study focused on (1) identifying alternative suitable
coals and the price for each (including transportation) and (2) determining
what other utilities paid for similar coals. It also briefly examined the
cost-effectiveness of mine operations. The study concluded that the captive
coal was cost-efficient (due to limited availability of coals with the required
specs) and that mine operations could be improved to reduce costs. (263-3)
16. Management Review of Minerals Development Capability - Coal Mining
& Service Company
Conducted a brief top management review of a minerals development arm of a
diversified industrial company. Here our charter was to determine the management
requirements of the company's minerals development subsidiary, determine its
place in the structure, and determine the management talent and capabilities
needed. It also entailed our taking a hard look at and evaluating the budget
and control process. (145-49)
17. Inventorying the Planning Requirements - Major Coal Mining & Service
Company
In the context of another assignment, we had observed a number of deficiencies
in the planning process of a large coal company with a complicated business.
In this assignment, we drew upon the knowledge developed in our prior work
to identify the planning requirements of the company and a program to meet
them. (145-46b)
18. Exploration Skills Audit - Major Australian Mining Company
This major Australian mining company decided to conduct an independent evaluation
as to the capabilities and skills of its discovery/exploration function. The
work involved a review of exploration management structure, practices and
arrangements; strategies; technical capabilities; etc. - all with a view toward
determining (a) the effectiveness of the present exploration activity and
(b) what improvements could be made in the discovery/exploration function
framework of the parent company's business objectives, strategy and culture.
After a worldwide search for a consulting firm, the Australian mining company
selected Anderson & Schwab (who at that time did not have an Australian
office), despite the obvious added expense entailed in such a selection. Our
client asked us to focus our work on four principal issues:
(1) Identification of the critical success factors for exploration in an international
context (i.e., within and outside of Australia);
(2) Identification of the appropriate structure for an international exploration
group, including use of local people, whether to extend the Australian organization
or purchase an existing international team, degree of control from Australia;
(3) Identification of the skills, talents and types of people (including qualifications
and experience) needed to operate an international mining company;
(4) Review of existing skills within the exploration group and pinpointing
of any gaps with those requirements identified in (3) above.
The core of our approach involved the development of evaluation criteria which
we used as the basis for responding to each of the principal issues described
above.
Our consulting team was led by A&S' CEO, a business analyst. It also included
an earth scientist with significant prior experience with Anglo American and
RTZ, as well as being CEO of a U.S. Junior Gold company, and a former Managing
Director of a medium sized Australian mining company who was the mining engineer.
This team developed its data base through face to face interviews with each
member of the professional staff of the company's Exploration Department both
in Australia and abroad; a review of a sampling of the geological, geophysical
and geochemistry work, and a review of documents dealing with each key element
of the discovery process.
Over 80% of the assignment was done in Australia and was concluded by presentation
and submission of a report which was ultimately submitted to the Board of
Directors of the company. (716-1)
