A shareholder interest group has advised Anglo American investors to reject CEO Mark Cutifani’s pay packet for his ‘above target’ performance.
ShareSoc, the UK Individual Shareholders Society, advised its members to vote against Cutifani’s pay scheme in the wake of the miner’s steep decline.
“We consider the pay of the CEO to be too high, and particularly so in a year when the company suffered a loss of US$5.6 billion in 2015 and dividends were suspended,” ShareSoc said.
“The market cap of Anglo has shrunk from 50 billion pounds sterling in 2008 to 8 billion pounds sterling today, however CEO remuneration has not been reduced to reflect the smaller and simpler company that Anglo now is.”
Cutifani has shrunk the company through a series of planned divestments, which includes completely exiting Australia, driven in part by the miner posting a US$5.6 billion loss.
“The CEO is still anticipated to receive 6.3 million pounds sterling for target performance and 8.8 million pounds sterling for ‘above’ target performance,” ShareSoc added.
However Cutifani still pocketed a 778,000 pound sterling bonus due to the maturation of a three year bonus scheme.
ShareSoc declared that this was still too high considering company performance.
“The remuneration committee appear to have been consistently over-rewarding the CEO,” ShareSoc spokesperson Cliff Weight stated.
Anglo American responded to these comments, telling Reuters, “We believe we have a remuneration policy that was approved at the 2014 AGM that strikes the right balance between stretch and achievability, designed to support the company’s strategic objectives and aligned with shareholders’ interests.”