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Cape Town - BHP Billiton [JSE:BIL] announced on Friday that it had cut bonus payouts to its top executives, as total returns to shareholders fell over five years.
In a statement to the JSE the global mining giant said although total shareholder return outperformed its peer companies by 34.6%, its total returns to shareholders was -9.4% in the 5-year period to end-June.
As a result the company's Remuneration Committee, with the support of the Board decided to reduce vesting by 35% for all current and former participating exco members.
"Accordingly, 35% of awards will not vest and will instead lapse," BHP Billiton said
New Chief Executive Andrew Mackenzie was also affected.
When he joined BHP Billiton in 2008 from rival Rio Tinto, he was granted 450 964 awards as part of his sign-on bonus.
The 35% reduction in vesting in terms of the 2008 Long Term Incentive Plan, means that based on Thurday's London close he had to forego £943 000 (R15m).
In addition, Mackenzie has elected to voluntarily relinquish a further 50 000 of the sign-on awards, stating that despite the outperformance of BHP Billiton compared to its peer group, the value delivered through vesting would be excessive.
See the full table containing the vesting outcomes for each current and former Group Management Committee member who participated in the 2008 LTIP.
- Fin24
