Miningmx reports that Glencore chairman Tony Hayward is “optimistic” shareholders will approve a proposed pay package for incoming CEO, Gary Nagle, on 29 April at the group’s annual general meeting.
Proxy advisers Glass Lewis and Institutional Shareholder Services (ISS) last week recommended the rejection of the proposal in terms of which Nagel – who will take over from Ivan Glasenberg in July – would receive a maximum total compensation of $10.4m. Nagle’s proposed remuneration includes short-term incentives and the introduction of a restricted share plan (RSP), 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 post employment under the holding requirement. 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. The package is driven by a salary of $1.8m which stands out as relatively high amongst peers”. Hayward reacted on Thursday: “We are disappointed that ISS and Glass Lewis have come out against it. We have spent an enormous amount of time over the last six months or so engaging with shareholders and we feel we came up with an overall package that was fair, balanced, and equitable with respect to our new CEO and shareholders.” In his view, the remuneration proposal had “some very market-leading components which everyone has acknowledged”.
- Read the full original of the report in the above regard by David McKay at Miningmx
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