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Melbourne - BHP Billiton [JSE:BIL] announced the surprise retirement of its popular chief financial officer (CFO) Alex Vanselow and expanded its top management committee on Monday, building on the team of potential successors to its young chief executive.
Vanselow is quitting in February 2012 to pursue personal business interests and will be replaced by Australian Graham Kerr, who is just 40 years old.
“They’re big boots to fill, but I’m sure BHP will adequately source a replacement and they have in this instance,” said Tim Schroeders, a portfolio manager at Pengana Capital, which owns BHP shares.
Kerr, who joined BHP in 1994, was until recently president of the group’s diamonds and speciality products division based in Vancouver.
Before that he worked in a range of finance and treasury roles at BHP, and worked for two years as commercial manager at mineral sands producer Iluka Resources.
He comes into the CFO job at a tricky time, with the eurozone threatening to melt down and top miners warning that demand is weakening as credit markets tighten.
But Vanselow said BHP, with its large, low-cost operations, “pristine” balance sheet and receivables at an all-time low, was well positioned to weather any potential downturn.
“This is the time when BHP excels, not when BHP suffers,” he told reporters on a conference call.
BHP recently raised $3bn in the bond market, jumping in when the markets were open even though the company did not need the funds.
“That builds another layer of security into the balance sheet,” Vanselow said.
The company has no exposure to the euro as the currency with all of its transactions, loans and bonds is US dollars.
BHP also appointed chief marketing officer Mike Henry on Monday to expand the group management committee to eight members, seen as the talent pool for the top job at the company.
But no one is expecting Marius Kloppers, chief executive since 2007, to leave anytime soon.
“It’s a bit early to call that,” said Richard Morrow, a director at EL&C Stockbroking.
Vanselow, a Brazilian, plans to relax on a beach in Miami after helping with Kerr’s transition, and then hunt for a new job.
He wants to head a publicly traded company with capital intensive, long-term investments similar to BHP and could work in South America, North America, Europe or Australia, he said.
BHP shares rose 2.2%, outpacing a 1.7% rise in the broader market, on hopes Italy may secure financial aid and help stave off a bigger mess in Europe.
