BHP Billiton has slashed the bonus of its new CEO as well as reduced the remuneration levels of all of its key executives, in the wake of a sharp decline in profits and shareholder discontent at the lavish pay packages enjoyed by senior management.
The company’s remuneration committee opted to reduce by 35 per cent the number of shares awarded to all of its key executives under a long-standing bonus scheme dating from just prior to the Great Financial Crisis.
The decision means Andrew Mackenzie will lose out on 158,000 shares, worth around $5.2 million in total.
Andrew Mackenzie, who was appointed CEO of BHP in May following the departure of Marius Kloppers, has further decided to relinquish 50,000 of the company’s London-listed shares, which are worth nearly $1.7 million, bringing the total reduction in his bonus to nearly $7 million.
Mackenzie will nonetheless receive around $8 million worth of shares.
The decision comes just after BHP Billiton announced a sharp plunge in profits for the fiscal year just ended.