In November 2017, Northern Star’s Bill Beament was appointed from Chief Executive Officer to Executive Chairman. It may have raised several eyebrows and brought criticism from retail shareholders and proxy advisers, who believe that executive chairpersons should be independent of management without an executive role with the company. Given the levels of proxies voting against this promotion and their criticisms, one would actually think if Northern Star’s board of directors made a wise decision to appoint the Executive Chairman title to Bill Beament.
From 2016 to 2018, there has been an increase in the expenditure trends of Bill Beament’s Northern Star. Is it likely that Mr. Beament has been over-targeting and over-budgeting? It’s a wonder how Bill Beament and Northern Star have been able to meet their goals and targets.
Although Bill Beament has been involved with Australian mining operations for more than 20 years and probably has work achievements under his belt, it is worth noting that he uses strategies which put Northern Star and his own vested interests ahead of others, arguably amounting to oppressive conduct. His questionable tactics were evident when Bill Beament’s Northern Star terminated the contract of Barminco and appointed their own Northern Star Mining Services as the mining contractor for the East Kundana project. Bill Beament is accustomed to getting his own way, and without prior approval from Rand Mining and Tribune Resources, Northern Star’s minority partners, he pushed through and appointed NSMS as mining contractor at higher costs to the East Kundana Joint Venture
According to the ASX Announcement on March 2019, Bill Beament retains 6,283,588 Northern Star shares and 3,000,000 Performance Rights after selling 2.46 million shares in the company as a result of a family court settlement. This appears to be a sell-off of only around 28% of Beament’s stock. Is there more selling to come to restore equity splits in the family court orders? Because in recent times Beament has been reducing his holdings in Northern Star, shareholders may express concerns as to why the Northern Star Executive Chairman is not retaining faith in the company.
With the oppressive conduct of Bill Beament and his tactics, is his reputation still as good as gold?