CEOs should set example, mine chief says

The president of the world's largest gold-mining company provided a few nuggets of advice Wednesday at the University of Utah.

Keynoting the 16th annual Spencer Fox Eccles Convocation, Pierre Lassonde, president of Newmont Mining Corp. since 2002, gave the crowd some tips about being an entrepreneur, consolidator and benefactor. Many dealt with ethical decisions, including his advice to not be "too tough or too smart" in business dealings.

"The world is very small, and if you make a deal where it's so bad for the other side, you're only going to do it once," Lassonde said. "Because what you'll find is that your reputation will be going out the door with it, and nobody else will want to deal with you. ... It's not worth it."

Lassonde said top company executives also should convey the vision of the company to each employee and set an example for them. Showing up late, taking Fridays off to play golf or having a girlfriend on the side? He likened it to the "monkey see, monkey do" activities in a children's playground.

"It works in big companies, too. The behavior of the CEO, from an ethical standpoint, from the vision of leadership standpoint, goes right down the line. What you do as a CEO, people will look at it and will imitate you, because you are a leader," he said.

On the entrepreneur topic, Lassonde suggested people find a niche that no one currently occupies, giving them a head start on any prospective competition. Newmont acquired Franco-Nevada Mining Corp. Ltd., which Lassonde cofounded and served as president and co-CEO. It was the first company making a market in mineral royalties.

But Lassonde noted that even a long-established industry like music still has people finding creative ways to be successful.

"It's got to be a daunting challenge for anybody trying to create a new song. There's only seven notes," he said. "And yet, every year, thousands of people write new songs and some of them make a huge amount of money writing songs. ... From seven notes, (there is) all of the magic that is created in the world."

Lassonde said business owners should always know the true per-share hard-asset value of their company because it will help determine financial and planning decisions. But he also said they should know the difference between being smart and being lucky. As an example, his company's first royalty opportunity was an investment of $2 million that has resulted in $600 million in returns.