Shareholders in Rio Tinto PLC (RTP) should oppose the Anglo-Australian miner's renumeration report at its annual general meeting on concerns of an excessive bonus for an outgoing executive, according to advisory group PIRC.

"Excessiveness is a concern in light of the integration bonus received by Dick Evans," PIRC said.

Evans, who stepped down as chief executive of Rio Tinto's aluminum division Feb. 1 and is due to leave the company's board April 20, received a $1.35 million cash bonus for 2008, and is eligible for a 2009 bonus of up to $9.6 million, according to Rio Tinto's annual report.

The bonus is for his work integrating Canadian aluminum producer Alcan Inc., acquired in 2007, into the group. That deal added almost $40 billion in debt to Rio Tinto's balance sheet and has weighed on the company since a swift and sharp decline in commodity prices started in the second half of 2008.

PIRC added that it welcomed the miner's recommendation that other top executives defer 2008 bonuses into shares, but said it "has concerns over the combined level of incentive remuneration and the appropriateness of targets."

Rio Tinto froze the base salaries of top-level management as it works to conserve cash and pay down debt. But it maintained its target level for annual bonuses at 60% of salary, according to its annual report.

"Executives may receive up to twice their target for outstanding performance against all criteria," the annual report said.

The company couldn't immediately be reached for comment. The annual report said Evans' bonus in both 2008 and 2009 "was provided as part of his remuneration arrangements to maintain the remuneration he was entitled to at Alcan at the time of the acquisition."

Evans was CEO of Alcan when Rio bought the company.

Rio Tinto will hold AGMs on April 15 in the U.K. and April 20 in Australia.

PIRC didn't advise shareholders to vote against any other resolutions.

Company Web site: www.riotinto.com

-By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347; jeffrey.sparshott@dowjones.com