1st Nov 2021 10:23
(Alliance News) - Glencore PLC on Monday said backed its chief executive remuneration policy, with the miner adding that no shareholders have called for current pay arrangements to change.
Glencore, updating on shareholder consultation following an annual general meeting vote, said its CEO's pay packet is competitive but not excessively higher than its peer group. Gary Nagle assumed the role of CEO in July, replacing Ivan Glasenberg.
At the April AGM, roughly 26% of voters opposed its directors' remuneration policy.
"The company understands those who voted against the policy expressed concerns primarily regarding the pay quantum for a new CEO versus predecessor levels and peers (and based on the company's relative market capitalisation at that time), and the performance orientation of the new restricted share plan," Glencore explained.
"Prior to negotiating the new CEO's remuneration, the remuneration committee in 2020/2021 spent significant time considering the most appropriate approach to the new CEO's pay given the unconventional nature of the former CEO's compensation, including his personal decision to waive salary increases and not participate in variable incentive schemes."
Glencore said its total remuneration package is "positioned competitively but not excessively versus the FTSE30 and a peer group". It also has a mix of both short- and long-term performance rewards.
Since the AGM, Glencore has undertaken a consultation process with shareholders, including the largest investors who opposed the remuneration policy vote.
"There was an acknowledgement by shareholders that the company had sought to implement a fit for purpose remuneration policy. While a small group of shareholders have questions regarding restricted share plans, no shareholder called for the current arrangements to be replaced. Instead, the company was asked for transparent disclosure of the first 6 months' operation of the policy in its 2021 annual report," Glencore added.
Glencore shares were 1.5% higher at 370.70 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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