Glencore revolt sees Bond out and Hayward in

Suzie Neuwirth
GLENCORE Xstrata shareholders yesterday appointed former BP chief executive Tony Hayward as interim chairman of the group, ousting industry veteran John Bond from the role sooner than expected.

A huge 80.85 per cent of the newly merged miner’s shareholders voted to remove the departing chairman, who was expected to step down once a permanent replacement had been found.

The decision is thought to be due to Bond’s recommendation of a heavy remuneration package to retain Xstrata bosses last year.

Hayward – the former BP chief executive who left after the Gulf of Mexico disaster – had already been mooted as the next Glencore Xstrata chairman, as revealed earlier in May by Mark Kleinman in City A.M, although this was denied by a company spokesperson at the time. The shareholders also ousted all remaining former Xstrata directors from the board. “It is obvious that the voting power is on Glencore’s side not Xstrata’s,” Paul Renken, mining analyst at VSA Capital, told City A.M. “Any protection for Xstrata directors seems to have been killed off and this is definitely a Glencore-managed company now.”

Bond said in a statement yesterday that he had anticipated departing with his successor in place but respects the “strong opposition among many to the retention arrangements which the board felt appropriate to ensure management stability”.