ISS advises investors to oppose Anglo American executive pay report
BENGALURU – A leading investor advisory firm has urged shareholders to reject the remuneration report for Anglo American's executives at the company's annual meeting next week, saying it was too generous given the miner's share price collapse.
Company executives have seen their Long Term Incentive Plan grant levels maintained at the same level as a percentage of salary for 2015, despite the 75% slide in Anglo's share price last year, Institutional Shareholder Services (ISS) said.
"Executive directors have received awards over more than triple the average number of shares granted in each of the last three years, thus leading to potentially considerable gains if the share price recovers," it said in a report, released on Friday.
ISS, which advises institutions such as pension schemes and others on how to use their votes at AGMs, said investors should therefore reject the remuneration report.
The move follows a similar call for action from investor interest group ShareSoc on Thursday, ahead of Anglo's AGM on April 21.
The maximum bonus opportunity for each of the directors, including CEO Mark Cutifani, is 210% of their base salary.
In response, a spokesperson for Anglo American said in an emailed statement to Reuters that the company's policy resulted in the CEO's remuneration "decreasing substantially" last year.
"His bonus was reduced by 40%, his variable pay was one fifth of the maximum achievable and his salary was frozen, as it was for all our management team," the spokesman said.
Anglo posted steep losses last year after commodity prices slumped and has sought to offset poor trading conditions with a restructuring plan, cutting head office costs by half and closing 20 mines since 2013.
The growing investor ire over pay at Anglo American follows hot on the heels of a similar revolt at oil major BP, where 59.1% of investors voted against CEO Bob Dudley's $19.6-million remuneration package.
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