Mike Henry will replace Andrew Mackenzie as chief executive officer of BHP from January 1 next year.
Henry is currently BHP president operations minerals Australia, a role he has held since 2016. He has also been a member of BHP’s executive leadership team since 2011.
Th CEO-elect started his career in BHP in 2003, overseeing business development at BHP Mitsubishi Alliance (BMA), before embarking on various other roles within BHP, including marketing, trading and ocean freight operations.
Henry later became president coal, president health, safety, environment (HSE), marketing and technology, and chief marketing officer in BHP.
His career in BHP was built on his experience in the resources industry in Canada, Japan and Australia.
BHP chairman Ken MacKenzie said Henry’s deep operational and commercial experience, developed in a global career spanning the Americas, Europe, Asia and Australia, is the perfect mix for BHP’s next chief executive.
“I am confident his discipline and focus will deliver a culture of high performance and returns for BHP,” Ken MacKenzie said.
“Mike has been a strong advocate for the industry, driving higher standards of safety and a commitment to our local communities and global stakeholders.”
Henry will also assume the role of executive director at BHP after Andrew Mackenzie retires on December 31 this year.
Ken MacKenzie acknowledged Andrew Mackenzie’s outstanding contribution as chief executive.
“Under his leadership, BHP has transformed into a simpler and more productive company, financially strong and sharply focused on value for shareholders. We thank him for his vision and hard work, which has changed the way we operate and engage with the world,” Ken MacKenzie said.
Andrew Mackenzie, who has been CEO of BHP since 2013, said it had been a privilege to serve as chief executive.
“BHP is in a good position. We have a simple portfolio, a strong balance sheet and options to grow value and returns for decades to come,” Andrew Mackenzie said.
“Fresh leadership will deliver an acceleration in the enormous potential for value and returns that will come from BHP’s next wave of transformation.
“Choosing the right time to retire has not been an easy decision, however the company is in a good position. I am confident Mike and BHP will seize the many opportunities that lie ahead.”
Henry said after more than 130 years of history, BHP was an even safer, more predictable and more focussed company today.
“We will unlock even greater value from our ore bodies and petroleum basins by enabling our people with the capability, data and technology to innovate and improve,” Henry said.
“We must operate safely, with discipline and reduce our impact on the environment. With the right people and the right culture we will deliver value and strong returns for shareholders and for all of society.”
Henry’s remuneration package will be consistent with that applied for Andrew Mackenzie.
A high proportion of actual remuneration received will be directly dependent on performance, with 75 per cent of total target remuneration represented by incentive plans, and only 25 per cent in fixed pay, according to Ken MacKenzie.
This is comprised of a base salary of $US1.7 million ($2.5 million) a year, a pension contribution of 10 per cent of base salary and a cash and deferred plan target cash award opportunity of 80 per cent of base.
Andrew Mackenzie will step down as chief executive, a member of the executive leadership team and an executive director of BHP on December 31, and will retire from the group in June 2020.