[miningmx.com] — IN 2011, Anglo American CEO Cynthia Carroll saw her
own financial fortunes rise considerably; she took home a 38% salary increase, and
also received a sizeable hike in the number of shares allotted to her.
According to the company’s latest annual report released earlier this week, Anglo paid
Carroll a salary of £2.17m (about R26m on current conversion rates) last year; 38%
higher than 2010’s £1.57m.
The figure consisted of £1.17m as a basic salary, £962,000 as the cash element of her
annual performance bonus, as well as £42,000 for benefits in kind (car allowance,
financial and taxation advice, etc.).
However, Carroll’s balance sheet was looking a lot stronger at the end of 2011; she
owned 65,315 shares on December 31 compared to 51.787 on January 1. Based on
Friday’s intraday share price of £26.18, Carroll’s stake in Anglo would be worth £1.71m
(around R20.5m).
She is also standing in line to become the owner of up to another 579,198 shares
(worth about £15.16m or R181m at current value) in relation to various performance
and long-term incentive schemes.
“Each executive director’s total remuneration consists of basic salary, annual bonus,
long-term incentives and benefits,’ read the report’s explanation of its executive
director’s remuneration mix. “An appropriate balance is maintained between fixed and
performance-related remuneration, and between elements linked to short-term
financial performance and those linked to longer-term shareholder value creation.’
During the period under review, the maximum award level of Anglo’s long-term
incentive plan (LTIP) for Carroll increased from 200% of basic salary to 350%. She
would now be entitled to up to 337,992 shares under the LTIP, compared to 276,969
at the beginning of 2011.
LTIP awards are based on a shareholder return as well as an operational measure.
Carroll’s rising personal fortunes came over the same period where the share price
value of Anglo American had fallen close to 30%.
The group had however posted a 23% increase in underlying earnings and paid a 14%
higher total dividend for 2011.
“The market for executives of main-board calibre, in large international mining
companies in particular, has continued to be very competitive in recent years and it is
therefore deemed sensible to position basic salary for executive directors at no lower
than the median point [of comparable size and market sector],’ read the report.
Basic salary increases for executive directors in 2012 were limited to an inflation
adjustment.
The report also disclosed Carroll received £78,000 from holding a directorship
elsewhere, although she didn’t earn anything from her position as chairperson of
Anglo American Platinum.
Among its non-executive directors, chairperson John Parker was paid £650,000 – the
same as in 2010.
Nicky Oppenheimer, who stepped down in April, was awarded £27,000, while newly
appointed Phuthuma Nhleko received £65,000. Ray O’Rourke asked the board to pay
his £80,000 fee to a charity.
