Pay cut for new BHP boss as top team rejigged

Suzie Neuwirth
ANDREW Mackenzie, the new chief executive of FTSE 100-listed mining giant BHP Billiton, will be paid over $500,000 (£327,740) less than his predecessor, to support the company’s “evolving strategic priorities”, it was announced yesterday.

Mackenzie will receive a salary of $1.7m per year, a drop from outgoing CEO Marius Kloppers’ $2.22m salary.

“We…believe that some downward rebasing at this time is appropriate; a view that is supported by Andrew,” said chairman Jac Nasser.

BHP said 72 per cent of Mackenzie’s total pay package depends on the performance of the business.

The news follows the firm’s announcement of its quarterly production output on Wednesday, which revealed that iron ore was down five per cent compared to the previous quarter following a cyclone in western Australia.

BHP Billiton, which has a dual listing on the Australian Securities Exchange and the London Stock Exchange, also announced it has reshuffled its senior management team. Geoff Healy, currently a partner at law firm Herbert Smith Freehills, has been appointed chief legal counsel effective from 3 June.

Peter Beaven has been given an expanded role as president of copper and Dean Dalla Valle now assumes responsibility for all coal assets.

Daniel Malchuk heads up aluminium, manganese and nickel businesses and Tim Cutt now leads the petroleum business.

“The removal of a layer of management bring the operations closer to the CEO and ensures alignment between our strategic and managerial leadership,” commented Mackenzie. “All of this will be critical in driving our productivity agenda.”