BHP Billiton cuts long-term bonus payouts to management
Payments to be cut by 35 per cent after decline in shareholder returns
BHP declined 9.4 per cent in the five-year perion. Photograph: Reuters
BHP Billiton, the world’s biggest mining company, said long-term bonus payouts to its chief executive and management committee will be cut by 35 per cent after shareholder returns fell.
Under the bonus plan granted in 2008, BHP had to deliver a shareholder return that exceeded a group of peer companies by an average of 5.5 per cent for the five years ended June 30th.
BHP declined 9.4 per cent in the period, compared with the 44 per cent slump of its peers. In April the company said chief executive Andrew Mackenzie will receive less pay than his predecessor Marius Kloppers.
Mr Mackenzie, who took over in May, will be paid a base salary of $1.7 million during fiscal 2014. Mr Kloppers’ base salary in 2007, when he became chief executive, was $1.85 million. – Bloomberg