THE Canadian head of BHP’s Australian operations, Mike Henry (53), will lead the group after Andrew MacKenzie, CEO for seven years, steps down on December 31.
“Mike’s deep operational and commercial experience, developed in a global career spanning the Americas, Europe, Asia and Australia, is the perfect mix for our next CEO,” said BHP’s chiarman, Ken MacKenzie, in a statement.
The appointment drew a mixed response, predictably.
“This internal promotion is a positive development for BHP as we view Mike Henry as a pragmatic, operations focused manager with a unique set of international and BHP-specific experiences,” said RBC analyst Paul Hissey.
Another analyst, however, said Henry’s appointment saw BHP pass up the chance of invigorating the board with an outside candidate. “The board had the chance to reinvigorate, re-energise. Now we get more same, same,” said Shaw & Partners analyst Peter O’Connor.
Henry led BHP’s Australian operations over the past three years including its biggest earner, iron ore, and the world’s largest metallurgical coal operations, said Reuters. He takes the helm just as slowing growth in China, the company’s biggest customer, as well as environmental and social issues, raise new risks and threaten to dent profits across the industry.
According to the Guardian, Henry has already stepped into controversy after refusing to say whether he would bow to shareholder pressure and take BHP out of the Minerals Council over its position on global warming.
Henry also declined to say whether he would be quitting his role as vice chair of the Minerals Council when he takes over from Andrew Mackenzie.
But he endorsed the position taken on climate by the company under Mackenzie, who earlier this year described global heating as a crisis requiring “the biggest global mobilisation since World War II”.
Mr Henry, who holds a bachelors degree in chemistry from the University of British Columbia, will be paid a base annual salary of $1.7m, said the Financial Times.
EGO IN CHECK
A former colleague speaking to Reuters anonymously said Henry had a reputation as a thoughtful, ethical, diligent leader, more a safe pair of hands than an aggressive company builder.
“He’s smart and dedicated and will apply himself with great diligence to the role. Mike leads by example,” said a former colleague who worked with Henry for several years.
“He’s a really straight up and down guy. He doesn’t play games and for a guy in that position, he has his ego totally in check,” said the source, who asked not to be named.
Henry asked for time to adjust to the new role, but outlined his interest in improving safety. He also stressed the need to improve returns for investors. “We do live in an uncertain world,” he said.
“That’s why…(we) need to be driving performance within the core business because that discipline, that performance will be what will allow us to navigate an uncertain world in the right way that will continue to grow value.”
“I need to get my feet under the desk, I want to spend time out engaging with our global operations, hearing from our people,” he was quoted by Reuters as saying.
