BHP Seeks Changes to CEO Pay Structure
17 September 2019 - 01:18AM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--BHP Group Ltd. (BHP.AU) said it will propose changes to
the way it pays Chief Executive Andrew Mackenzie, including
alterations to the structure of long-run incentives.
Changes proposed by the company, the world's biggest miner by
market value, include a reduction in Mr. Mackenzie's long-term
incentive plan as a proportion of his base salary and a cash award
with a longer-term focus than current short term incentives, BHP
said. Those changes would result in a 12% cut to maximum annual
remuneration, it said.
Other changes planned include a cut to Mr. Mackenzie's pension
contribution rate and the introduction of a two-year
post-retirement shareholding requirement.
The miner said it will put proposed remuneration policy changes
to investors at annual shareholder meetings in the U.K. and
Australia later in 2019.
"BHP's board and remuneration committee believe the proposed
changes improve our senior executive remuneration arrangements and
they will continue to promote long-term value creation," BHP said
in its annual report.
Mr. Mackenzie earned US$3.5 million for fiscal 2019, below a
target package of US$7.7 million, said the company. The minimum
available package was US$2.2 million and maximum was US$13.1
million.
"From a performance perspective, while shareholders have
benefited during fiscal 2019 from positive share price growth and
significant shareholder returns, the year was a challenging one
operationally for BHP, and the remuneration outcomes for fiscal
2019 for our senior executives reflect this," the company said.
The company said Mr. Mackenzie's base salary will remain
unchanged in fiscal 2020, at US$1.7 million.
There will also be no change to annual fees for Chairman Ken
MacKenzie or nonexecutive directors, BHP said.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
September 16, 2019 19:03 ET (23:03 GMT)
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