Mining Weekly reports that proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis have recommended that Glencore’s shareholders should reject a proposed pay package for incoming CEO Gary Nagle at the firm's annual general meeting (AGM) later this month.
Glencore announced in December that Nagle would take over as CEO from Ivan Glasenberg, who has been at the helm for 19 years, from July. Glasenberg had a yearly salary of $1.5-million with no further incentives. Under the new proposed pay plan, Nagle would receive a maximum total compensation of $10.4-million, including short-term incentives and the introduction of a restricted share plan (RSP), which is a form of long-term pay whereby shares are held by the employer for a certain period. Share rewards would account for 60% of the total. Around 40% would be held back until two years after employment under the holding requirement. In a note to shareholders on Thursday, ISS said the "proposed pay package is considered excessive with a large proportion being non-performance-related, partly due to the introduction of an RSP." ISS added: "The package is driven by a salary of $1.8-million, which stands out as relatively high amongst peers." Glass Lewis noted that Nagle's compensation would be excessive for a "newly appointed CEO with no previous experience of running a publicly listed company." But according to Glencore's remuneration committee, which compared the proposed pay to peers including Anglo American, BHP, BP, Rio Tinto and Royal Dutch Shell, Nagle’s remuneration of up to $10.4-million would be aligned to shareholders' interests.
- Read the full original of the report in the above regard at Mining Weekly
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