Mining group Anglo American has lowered the bar at which chief executive Mark Cutifani reaches his performance targets, a controversial move as shares in the company this month fell to a 12-year low.
Cutifani, who was paid £3.7m last year, makes around half of his yearly take-home pay through a long-term incentive plan (LTIP) based on achieving an annual return of between 12 and 16 per cent on invested capital.
Anglo American’s remuneration committee has changed this target range to between nine and 13 per cent.
The company said the reduction was due to the slump in commodity prices, felt around the globe over the past year.
“A range of nine to 13 per cent is the equivalent of the 2014 LTIP target of 12 to 16 per cent should prices remain at the levels seen in early 2015 over the performance period,” the group said in its annual report.