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Boart’s new boss to be paid less

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The new chief executive at driller Boart Longyear, Richard O’Brien, will take a pay cut of about one-third.

The world’s largest driller will pay Mr O’Brien a base starting salary of $US750,000 ($A738,916.26) a year.

That compares to nearly $US1.2 million ($A1.18 million) a year out of a total $US6 million-plus package at world number two goldminer Newmont Mining, where he finished as chief executive last week.

Boart, which reported a 58 per cent drop in full year profit in 2012, hopes Mr O’Brien’s background with Newmont will help its understanding of its mining customers.

Boart’s package will also offer an annual short-term bonus at up to 100 per cent of his base salary plus long term incentive and performance share rights of up to $US3.75 million ($A3.69 million) in 2013.

He will also receive other car and travel allowances.

Ousted chief executive Craig Kipp left the company with a $US1 million ($A985,222) termination payment on top of a $3 million-plus package in his final year.

Boart’s shares had slumped 6.5 cents, or nearly 4.0 per cent, to $1.66 by 1430 AEDT.