The head of a multinational resources company will finish up a few months earlier than expected after losing nearly a quarter of his annual remuneration in September.
BHP has confirmed CEO Andrew Mackenzie’s (pictured) last day will be 31 March 2020 instead of the originally planned departure date of June 30.
“The board of BHP announced that Andrew Mackenzie’s retirement date will be … three months earlier than previously announced,” the mining giant said in a statement to the stock market. “The board, Mr Mackenzie and Mr Henry are confident that the CEO transition is proceeding well and ahead of schedule, with Mike Henry assuming the role of chief executive officer from 1 January 2020.”
Pay cut
The remarks came just a month following Mackenzie’s formal resignation from the top job and three months after he suffered a 24 per cent pay cut to US$3.5 million (A$5.1M) compared to the previous 2018 financial year (FY2018). His earnings include a base salary of US$1.7M (A$2.5M) plus a variety of performance related bonuses, according to the Australian Associated Press.
“Andrew Mackenzie will continue to be employed by the company until 31 March 2020 under the terms of the 2019 remuneration policy,” BHP said. “The company will pay him a salary, make pension contributions and provide usual other minor benefits until then. His base salary is US$1.7M per annum and pension contributions are 25 per cent of salary for the FY2020.”
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No termination pay
Although Mackenzie will receive superannuation and any remaining leave payouts he will still receive no termination payment.
“Upon retiring, Mr Mackenzie will be entitled to receive the accumulated value of funds under relevant pension plans, together with the value of any accrued leave,” the company said. “Mackenzie will receive no severance payment, and no payment in lieu of notice.”
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