ANGLO American has scrapped plans to guarantee substantial bonuses for senior executives following shareholder opposition, days before investors vote on its $50bn merger with Teck Resources.
The FTSE 100 mining group had proposed amending executive compensation schemes to ensure CEO Duncan Wanblad and other directors received at least 62.5% of their share awards if the Canadian deal completed, regardless of performance metrics.
After extensive discussions, shareholders voiced significant concerns about the proposals, prompting Anglo to withdraw the resolution ahead of Tuesday’s shareholder vote on the Teck combination.
The abandoned scheme would have delivered minimum payouts worth £8.5m over 2024-2025, approximately three times Wanblad’s £1.4m annual salary for each year, said the Financial Times. Standard arrangements require zero minimum vesting, with awards dependent on meeting financial, environmental and safety targets.
Peel Hunt analysts predict the resolution’s removal will secure strong shareholder backing for the Teck merger, which would establish the world’s fifth-largest copper producer by mined output, according to Benchmark Mineral Intelligence figures, the newspaper said.
Anglo stated Tuesday’s vote will proceed solely on issuing new shares for the merger, with executive remuneration discussions postponed until the 2026 annual meeting.
The company previously encountered shareholder resistance in April when roughly 25% opposed linking directors’ awards to three-year rather than annual share price performance.
Anglo shares declined 0.75% to £29.57 on Monday, having risen nearly 50% this year but remaining substantially below 2022’s £42 peak.
The miner continues restructuring operations, divesting its De Beers diamond business whilst spinning off coal, nickel and platinum divisions. Rival BHP recently renewed acquisition interest after an unsuccessful attempt eighteen months earlier.
