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Mixed reponses to Anglo resignation

Oct 26 2012 18:36

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Johannesburg - The resignation of Anglo American CEO Cynthia Carroll evoked mixed response on Friday.

The Public Investment Corporation (PIC) and Government Employees Pension Fund (GEPF) blamed Carroll for the company's lacklustre performance.

"Whilst depressed commodity prices are partly to blame for the group's disappointing performance, we believe that capital allocation, poor project management and poor operational performance have contributed the bulk of the observed underperformance of Anglo," they said in a statement.

They said Anglo underperformed when compared to peers since 2006 with regards to total shareholder return.

The PIC is the largest South African shareholder in Anglo and holds seven percent of its shares on behalf of the GEPF.

The two admitted it was easy to second-guess decisions made by Carroll with the benefit of hindsight.

"However, it is understandable that these strategic aspects will rest squarely on the CEO's shoulders," they said.

The PIC and GEPF said a "serious refocus" of the company was needed. This should include looking at the composition of the board to include more people from emerging markets, locations that were responsible for more of Anglo's activity.

Trade union Solidarity described Carroll's departure as a "huge loss" for the company and a "major setback" for the South African mining industry.

"Carroll continually championed South Africa's mining industry abroad," general secretary Gideon du Plessis said in a statement.

He argued that Carroll's resignation was a sign the industry was losing faith in South Africa.

"It is disturbing that key persons in the industry are losing faith in South Africa's mining industry," Du Plessis said.

He commended Carroll for being willing to make decisions, regardless of their popularity.

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