Anglo American braces for investor revolt over executive pay

Jessica Morris
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Mark Cutifani's reward package is worth £3.4m (Source: Getty)

FTSE 100-listed miner Anglo American is bracing for an investor revolt over execs' pay packets at its annual shareholder meeting tomorrow.

Shareholder interest group, ShareSoc, has urged investors to vote against chief executive Mark Cutifani's reward package, which is worth £3.4m.

Advisory firm Institutional Shareholder Services (ISS), representing about 20 per cent of shareholders in UK stocks, is voting against Anglo's pay report. They said it fails to reflect a 75 per cent fall in the company's share price since 2015.

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However, another proxy adviser, Glass Lewis, representing about five per cent of investors in UK stocks, is recommending a vote in favour of Anglo's pay report.

The miner's balance sheet has been hammered by the commodities rout over the last 18 months. This has forced it to scrap its dividend, and unveil an ambitious turnaround plan.

BP shareholders voted against BP chief exec Bob Dudley's £14m pay deal earlier this month after the oil major posted an annual loss. Shareholder ire has also been stirred at other London-listed firms Centrica and HSBC.

Anglo American announced today that its long-serving finance director, Rene Medori, will retire in 2017 when he turns 60.

The miner has started to look for a successor, and it added that Medori would continue in his role until one is found.

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Sir John Parker, chairman of Anglo American, said: "I would like to thank René for his dedication and tremendous contribution over more than a decade."

"The cyclicality of the mining industry presents the widest array of challenges and René's professionalism has served the company well."

Anglo shares closed up four per cent at 782.57p per share today.

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