Anglo American Shareholders Reject Pay Package for CEO Mark Cutifani – by Scott Patterson (Wall Street Journal – April 21, 2016)

http://www.wsj.com/

LONDON— Anglo American PLC shareholders voted in large numbers against a lucrative pay package for the company’s chief executive, Mark Cutifani, a sign of growing dismay with commodities giants whose shares have suffered in the past year amid a rout in prices.

The vote signaled some investor disappointment with Mr. Cutifani’s performance as he embarks on a restructuring plan in which the century-old mining company plans to cut tens of thousands jobs and reduce the number of mines it runs to 16 from 45.

Following Anglo’s annual meeting Thursday in London, the company said 42% of the votes cast were against its executive-compensation plan, which included a decision to pay Mr. Cutifani £3.4 million ($4.9 million). The CEO’s total pay, which includes a £966,000 bonus, was 8% lower than a year ago.

Anglo reported a $5.6 billion net loss in 2015, following a loss of $2.5 billion the previous year. Anglo’s shares tumbled about 70% in 2015, making it the worst performer on the U.K.’s blue-chip FTSE 100 index.

Thursday’s vote follows last week’s rejection by BP PLC’s shareholders of the company’s executive-pay policy, a stinging rebuke to the oil titan’s chief executive, Bob Dudley, and his board. The oil giant said 59% of shareholder votes were against the company’s compensation decisions for 2015. The plan included a roughly 20% increase for Mr. Dudley’s total pay for the year, when BP lost $5.2 billion.

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