Advertisement

BHP Billiton unveils new CEO's contract

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.

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.

Advertisement - Article continues below

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

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?
UK Economy

Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?

John Stepek runs his eye over the chancellor's £30bn stimulus package and asks if it's enough to get the economy back on its feet after months of lock…
9 Jul 2020
A first-half home run for investment trusts
Sponsored

A first-half home run for investment trusts

The investment trust sector has seen some extraordinary performance in the first half of this year. Max King looks at what's behind it, and asks: is i…
7 Jul 2020