Not enough miners on Rio board: advisor

A key corporate advisor has expressed concern about the lack of mining experience present on the board of Rio Tinto.

Fairfax Media reports the British arm of CGI Glass Lewis has called on Rio to review its board structure with the aim of boosting mining experience in the leadership team.

 

The advisor said while board members showed key skills in the legal, accounting, business, and finance sectors, a lack of executives from the mining sector could hurt the company's prospects.

 

“We remain concerned with the apparent lack of core industry experience and strategic geographical diversity among the independent element of the board,” Glass Lewis said in a report.

 

“We believe that additional independent directors with core industry expertise would provide an informed 'check and balance' with management on issues specific to this group's industry.”

 

Glass Lewis said a board shake-up was even more important in light of some of the losses Rio had incurred over recent years.

 

“Given the magnitude of the impairments and asset write-downs by the group in recent years, the need for the board to review its composition, including the appropriate skill, mix and breadth and depth of relevant experience, is of particular importance in ensuring effective oversight over strategic management decisions,” it said.

 

Earlier this year Rio's head of iron ore, Sam Walsh, was appointed as the company's new CEO following the resignation of Tom Albanese.

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