Glencore's chief executive in line for £87m payout this week just days after news of fraud probe emerges

 
Lucy White
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Ivan Glasenberg owns around eight per cent of Glencore (Source: Getty)

Glencore's chief executive is set to receive almost £90m in dividend payouts this week, just days after it emerged the Serious Fraud Office (SFO) is preparing to open a bribery investigation into the company.

The mining and commodities trading giant will grant its boss Ivan Glasenberg around £87m, in the first half of a £2bn dividend due to shareholders this year.

Glasenberg, who owns approximately eight per cent of Glencore, also gets paid a $1.5m (£1.1m) base salary, but has waived his entitlement to other bonuses and long-term incentives due to the size of his stake in the company.

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The chief executive last expanded his stake in 2015, when he scooped up 110m shares for $211m as the company raised $2.5bn through a equity issue to help it cut its hefty debt load.

However, the possibility of an SFO probe revealed by Bloomberg casts a cloud over the dividend positivity.

The fraud watchdog is preparing to open a formal investigation into Glencore's work with Israeli billionaire Dan Gertler and Joseph Kabila, the leader of the Democratic Republic of Congo.

Read more: Glencore's shares slide on rash of issues in the DRC

Gertler has previously been sanctioned by the US, over claims he had used his connections with Kabila to do corrupt business.

Glencore, meanwhile, has been trying to cut ties with the billionaire and has bought out his stakes in their joint ventures, after hedge fund Och-Ziff Capital Management admitted to conspiring with an unidentified Israeli businessman to bribe Congolese officials.

Shares in Glencore fell more than four per cent on Friday, as the news of the probe emerged.

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