Xstrata shareholders are this week expected to vote down a $200 million bonus package for the company’s “key managers” in Switzerland.
Investors will meet tomorrow to approve Glencore’s $78 billion merger with Xstrata to create the world’s largest commodities trader.
While the deal is expected to win approval, a massive payout designed to retain Xstrata’s executive team looks unlikely to go ahead.
According to The Australian, about 20 per cent of the payout was meant to go to around 14 white collar workers in Xstrata’s main office in Zug, Switzerland.
The workers include administrative, legal, and financial staff and Xstrata says they’re an essential part of running its mining assets.
Exact details of the key managers receiving the payout remain confidential, but several large shareholders have signalled a move to vote against the “golden handcuffs” scheme.