BHP Billiton's incoming Chief Executive Officer (CEO) Andrew Mackenzie will receive a yearly 1.7 million dollar salary when he joins the mining and petroleum company in May.
The group unveiled the terms of Mackenzie's contract Thursday along with changes to the senior management team.
As part of his contract, he will receive a pension of 25% of base salary, a short term incentive target opportunity of 160% of base salary and a long-term incentive award for 2013 of 400% face value of base salary.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
His remuneration is linked to business outcomes and shareholder returns, the FTSE 100 firm said. The "at-risk" component, consisting of short and long term incentives, is set at 72% of the total remuneration.
Fixed remuneration, which includes base salary and pension, comprises 28% of the total.
Mackenzie replaces Marius Kloppers who will leave without severance pay. He will receive his base salary and pension entitlement to the date of his retirement from the board on October 1st.
The new senior management team also including Peter Beaven as President of Copper, Tim Cutt as President of Petroleum and Potash, Dean Dalla Valle as President of Coal and Graham Kerr as Chief Financial Officer.
Mackenzie said: "With the company's focus having shifted to an even greater emphasis on operational excellence, the removal of a layer of management brings the operations closer to the CEO and ensures alignment between strategic and managerial leadership. All of this will be critical in driving our productivity agenda.
"The new team will be tireless in its pursuit of best in class in terms of dollars spent per tonne mined and barrel lifted, maintaining our capital discipline, delivering sustainable returns for our owners and continuing to contribute to the communities and countries in which we operate."
RD
-
Gold’s allure and why you should never 'pay a premium for graded coins'It is easy to become distracted by the beauty of gold, but remember why you buy it, says Dominic Frisby
-
A rebound in UK's commercial property – should you invest?UK commercial property's three-year bear market finally appears to be over, says Max King
