BHP boss paid $8.1m but missed out on more after fatalities and production issues
BHP Billiton's chief executive was paid $8.1m (£6.2m) last year but missed out on a higher increase due to fatalities at the company's mines and lower than targeted production.
Andrew Mackenzie's total remuneration package for the year to the end of June, excluding shares payments, was $4.657m – an increase of $100,000 on the previous year.
But Mackenzie missed out on his target remuneration of $7.71m after two fatalities at its Goonyella Riverside mine in Queensland, Australia and at the Permian Basin Shale operations last year.
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His maximum remuneration was $13.1m, which the company said was only realisable in circumstances of “significant outperformance”.
The company's remuneration committee chairman, Carolyn Hewson, also said production performance below expectations was another factor.
Hewson said overall volumes of coal, iron ore and copper were lower than expectations, partly offset by higher than expected protection of petroleum products.
BHP said it considered Mackenzie's “strong performance” against these factors and issued the pay rise.
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The company posted record iron ore output and full year production came in at 275 million tonnes, at the lower end of BHP's 273-283 tonnes.
Mackenzie's base salary for the financial year 2019 will remain at $1.7m – as it has been since he took up the post in 2013 – and the same target system will remain in place.