Chairman Tony Hayward has defended the payment plan, saying he was disappointed that the two advisory firms were against it.
Glencore has only had three chief executives since founded in 1974. Glasenberg had received a flat annual salary of $1.5 million since Glencore listed in 2011, so Nagle will be the first subject to a conventional pay arrangement. The bulk of his remuneration, however, would from short and long-term incentive schemes.
The Swiss miner and commodities trader group had said in its latest annual report it considered Nagle’s proposed remuneration to be sensible and aligned with shareholder interests.
“The maximum total annual remuneration that the CEO will actually receive during his employment is c. $6.4 million compared to the peer maximum of $11-18 million,” it said.
Strong year of earnings ahead
Earlier in the day, Glencore announced first-quarter results, the last update under Glasenberg.
The company said copper production rose by 3% to 301,200 tonnes on higher output at its South American operations, while zinc, lead and nickel output fell.
Glencore, which is one of the world’s top cobalt miners, also saw production of the battery material cobalt climb 11% in the period.
The firm’s trading arm benefited from rising prices for its crucial commodities.
Glencore said copper prices had averaged $8,501 in the three months to March, up 51% on the same period of 2020, while zinc was up 29%, nickel 38% and thermal coal 27%. The firm was on track to deliver core profit in the top half of its guidance range of $2.2 billion to $3.2 billion this year.
More to come…
