Goldcorp disappoints on lower margins,

• After shareholders approved Goldcorp Inc.’ s “say on pay” resolution at its annual meeting on Thursday, chairman Ian Telfer fired off a zinger at the proxy advisory firm that recommended against it.

“The ‘Glass Lewis’ is half empty, not half f ull,” he quipped, referring to Glass Lewis & Co. “Because 90 per cent of shareholders ignored their advice.”

Glass Lewis also advised shareholders to vote against the executive compensation packages at Barrick Gold Corp. and Yamana Gold Inc. And in both cases, an overwhelming majority of investors rejected those plans at annual meetings this week.

But it appears the Glass Lewis recommendation on Goldcorp got little to no traction, as 89 per cent of shareholder votes were in favour of the firm’s compensation plan.

Chief executive Chuck Jeannes told reporters after the meeting in Toronto that he was “thrilled” with the result, which is non-binding.

“I was disappointed in the Glass Lewis recommendation. I don’t think it made sense because it was based on a comparison of our financial results with companies outside our sector,” he said.

Vancouver-based Goldcorp did not have a great year in 2014, as it missed production guidance and had some operating issues. But Jeannes, who earned US$8.5 million, noted that his bonus and his overall pay both declined significantly from the prior year.

“I think our investors saw that, they understood it, (and) they felt that there was a proper connection between our compensation and their experience as a shareholder,” he said.

At the annual meeting, both Jeannes and Telfer stressed Goldcorp’s strong financial condition and said it is well positioned for whenever gold prices recover.

But the company reported relatively weak first quarter earnings on Thursday. Adjusted profit was just US$12 million, or a penny a share, which was below the lowest analyst estimates. The new Eleonore mine in Quebec had a relatively weak quarter as it faced some operating challenges.

Investors were unhappy with the results, pushing Goldcorp’s stock down more than six per cent to $22.71 on Thursday. While the entire sector was down, Goldcorp fell more than its rivals.

However, the company maintained its production and cost guidance for the year and said production should increase over the course of 2015 due to higher output from the Penasquito, Cerro Negro and Eleonore operations.

Goldcorp, the world’s biggest gold miner by market value, is nearing the end of a multi-year mine-building program. As a result, its production is going up and capital spending is declining, meaning the company expects cash flow to be strong for a “sustained” period.