• 2 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 4 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 3 hours Clean Energy Is Canceling Gas Plants
  • 17 hours GAME CHANGER: MIT Startup Commonwealth Fusion says Commercial Product by early 2030s ! THIS CHANGES EVERYTHING..
  • 5 hours Rethinking election outcomes for oil.
  • 7 hours The Leslie Stahl/60 Minutes Interview with President Trump
  • 2 days America's Frontline Doctors - Safely Start Living Again!
  • 16 hours OP article : "Trump blasts Biden Fracking Plan . . . "
  • 3 hours Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 7 hours Video Evidence that the CCP controls Joe Biden
  • 18 hours Biden denies fracking ban
  • 2 days Is the coal industry on the way out?
  • 2 days "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 3 days Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
IMF Sees Oil Prices At $40-50 Next Year

IMF Sees Oil Prices At $40-50 Next Year

Oil prices are not expected…

Mining Giant BHP Freezes Executive Salaries

Mining giant BHP (ASX, LON, NYSE: BHP) has frozen the salaries of its key executives for the coming financial year, while paying chief executive Mike Henry $6.1 million for the first six months on the job.

In its remuneration policy section of its annual report, the world’s largest miner said that Henry, who replaced former boss Andrew Mackenzie in January, received most of his salary through short- and long-term incentives.

Susan Kilsby, chair of BHP’s remuneration committee said the figure represented “an appropriate alignment between pay and performance during the year.” She added it was also fair “in terms of the global context in which decisions have been made.”

Companies big and small have faced cost pressures as some mines have shut down and new safety measures have been adopted due to the coronavirus pandemic. Those measures are also expected to affect executive salaries.

BHP noted that Henry’s total target remuneration remained unchanged at $7.5 million, 12% lower than that of Mackenzie. The former CEO took home $2.4 million for the first half of the 2020 financial year and another $5.3 million as his 2015 long-term incentive.

Lowest pay packet

Henry’s pay packet, which places him toward the bottom of Australia’s top ten paid CEOs, also reflects the growing trend to simplify top executives’ pay.

His long-term incentive plan includes a maximum $3.4 million pay-out, while short-term bonuses include two tranches of shares over two and five years, worth up to $2.55 million, rather than an annual bonus.

In addition to longer-term remuneration, Henry is expected to hold BHP shares worth up to five times his base salary, another good sign for investors.

The Melbourne-based company reported last month a 4% drop in annual profit that missed analysts’ estimates. Underlying profit attributable from continuing operations for the year ended June 30 fell to $9.06 billion, below estimates of $9.42 billion, according to Refinitiv IBES data.

BHP said at the time the risk of new virus outbreaks around the world threatened to undermine growth and it was already weighing on the demand outlook for 2021.

By Mining.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News