[miningmx.com] – WHO will lead Anglo American following the
resignation of Cynthia Carroll, head of the organisation since 2007?
Here are a few suggestions, consisting of a usual suspect, a front-runner and a
surprise but highly logical possibility.
MICK DAVIS
Xstrata CEO, 54
Formerly FD of Billiton
A popular gambit is Mick Davis, currently CEO of Xstrata. The view is based on the
fact that Davis has agreed to leave the organisation six months after the completion
of its merger with Glencore, with Glencore CEO Ivan Glasenberg taking overall charge
of the combined company.
That depends, however, on whether shareholders in Xstrata and Glencore approve the
$33bn merger. It also assumes that Davis is the right fit for Anglo, which some doubt.
Davis has that ruthlessness that analysts believe is necessary to restructure Anglo.
However, Anglo chairman Sir John Parker’s witticism that the group couldn’t afford
Davis doesn’t just hint at the controversial salary retention offered to Davis in one
iteration of the proposed merger with Glencore, it also underpins a certain cultural ill-
fit with Anglo.
There’s also the question of timing. The earlier Davis can leave Xstrata is end-June. If
we’ve learned anything from Sir John, it’s that he likes to move decisively. Faced with
a proposed merger from none other than Davis’s Xstrata in 2009, Sir John appointed
three directors in the space of a month to bolster the Board.
Verdict: Nice in theory, unlikely in practice
MARK CUTIFANI
AngloGold CEO, 56
Formerly COO CVRD Inco
Appointed at AngloGold Ashanti in 2007, he was instrumental in severing the link with
Anglo American which owned about 40% of the gold producer at the time. Might he be
tempted to return to the once dominant parent? Definitely, says a fund manager.
The view is that the Anglo American post would be a huge opportunity for Cutifani
who, like Carroll, has shown himself adept at managing Government relationships.
Unlike Carroll, however, Cutifani has an impressive rapport with his reports. Like
Carroll, he has operational nous. Unlike Carroll, his capital allocation skills have been
impressive.
“What more can he do at AngloGold Ashanti? He’s got a broad background
geographically and in minerals that he’s managed. And I don’t think the South African
government will get its wish for a local. But he’s as close as they will get,’ he said.
All in all, Cutifani has strengths in all the areas Carroll has commanded – fatalities at
AngloGold Ashanti are down two-thirds since he took over – and has strengths she
didn’t possess. A popular vote.
Verdict: Popular, capable, experienced. But can they get him?
ALEX VANESLOW
Free agent, 49
Formerly CFO BHP Billiton
Vaneslow, a BHP Billiton lifer until he figured CEO Marius Kloppers was unlikely to quit
anytime soon. Vaneslow looks a likely candidate and is clearly desirous of being a
CEO.
Here’s what he told the Financial Times at the time of his resignation in November
2011 (effective February 2012): “I will start thinking about what is next in an area
that I am proficient with, but as CEO, not as a CFO. My skills are in industries that are
long-dated, capital intensive industries’.
A local fund manager is unconvinced about the speculation linking Vaneslow to the
job. “He’s sedate,’ he says. “A bit like Tony Trahar [Carroll’s predecessor]’.
Verdict: A safe pair of hands. Possible.
CHRIS GRIFFITH
Anglo American Platinum CEO, 46
Formerly CEO, Kumba Iron Ore
Probably the best internal candidate Anglo American has and one that may win the
plaudits of Susan Shabangu, South Africa’s mines minister, who has made her
preference for a South African appointment clear. Whether this stems from a desire
that Anglo’s strategy move closer to the national interest is unknown, but it’s surely a
wrong-headed view on who should run Anglo in the future.
With only 28% of the shareholder register located in Africa, as Anglo describes it in its
2011/12 annual report, the group is a multi-national where an executive with global
experience might be the preferred choice, especially if the strategic plan is to carve
Amplats out of Anglo.
Verdict: Up and coming, but the appointment comes a bit too soon.
PHILIPPE MELLIER
De Beers Group CEO, 57
Formerly executive at Ford Motor Company
Okay, clearly an outside choice but if anything, instructive of how Sir John Parker is
prepared to dispense with the traditional Anglo mould of executive appointment which
used to be someone who served time in Anglo’s head office having already earned an
Oxbridge PPE [philosophy, politics and economics] degree.
Mellier’s appointment surprised the market if only because he stands in such contrast
to his predecessor at De Beers, Gareth Penny, and before him, Gary Ralfe. Born in
Nancy, France, Mellier has a mechanical engineering degree. He began his career at
Ford Motor Company, holding down various management positions for some 19 years
before becoming senior vice president at Renault, the French carmaker.
Verdict: Best internal candidate but the world is Anglo’s oyster.
– Finweek
