By Alex MacDonald
LONDON--Marius Kloppers, the former chief executive of BHP
Billiton Ltd (BHP), earned $16 million in his final year as head of
the Anglo Australian mining titan, while his successor has taken a
pay cut.
Although the South African's five-year tenure was blemished by a
failed attempt to take over Rio Tinto PLC (RIO) and Potash Corp of
Saskatchewan Inc (POT) and by writedowns relating to its
multi-billion-dollar U.S. shale gas purchases, he was praised for
fiscal discipline and earned a near $10.4 million bonus for BHP's
outperformance of its peers. He has been acting as an advisor to
incoming CEO Andrew MacKenzie and will leave the company next
month.
Mr. MacKenzie by contrast earned a $2.47 million pay package
last year, reflecting 10 months as head of BHP's non-ferrous
division and two months as chief executive. The Scotsman took over
from Mr. Kloppers in May and has agreed to a 23% cut in the base
salary earned by Mr. Kloppers, in recognition of the slide in
commodity prices this year. He will now earn $1.7 mlllion as a base
salary for the fiscal year through June.
Mr. MacKenzie also agreed to a lower pension payout, a smaller
maximum bonus and has forgone some of the shares that he was
awarded as compensation for forgoing his Rio Tinto bonus in order
to join BHP in 2008.
Prices for iron ore, coal and other raw materials have fallen
amid wavering demand from China, the world's second-biggest
economy.
Jac Nasser, BHP's chairman, said in the company's annual report
Tuesday that commodity markets are under pressure from increased
supply and the trend will likely continue in the short term.
"All resources companies will need to improve productivity and
be flexible enough to adapt to change in this more challenging
environment," he said.
BHP's shareholders will vote on the company's remuneration
report at general meetings in London and Perth on Oct. 24 and Nov.
21 respectively. Shareholders will also vote on the company's
longterm incentive program, which is up for renewal as it
approaches its 10-year anniversary.
Write to Alex MacDonald at alex.macdonald@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires