Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Marius Kloppers, CEO of mining giant BHP Billiton, has decided to waive his annual bonus in light of a recent forecast in which BHP’s revenues are projected to drop 38%, says a report by The Sydney Morning Herald.
The report also suggests that Klopper’s decision is in response to the company’s recent poor performing shale unit and rejected deals which include “hostile bids for Rio Tinto and Potash Corp of Saskatchewan.”
BHP, due to report earnings tomorrow, is suffering from a decline in commodity prices as growth slows in China and Europe. This report will include a $US450 million charge against BHP’s shale assets, which Kloppers bought for $US20 billion last year. Citigroup valued them at $US12.3 billion this month, reflecting a drop in gas prices. Kloppers, 49, took home $US11.6 million in salary, benefits and bonuses in the 2011 fiscal year.
The move follows the act of Rio Tinto’s big CEO Tom Albanese, who declined his bonus after the company’s aluminum assets plummeted earlier this year.
Not long ago Kloppers made Barron’s list of the world’s 30 best CEOs. Kloppers was the only mining CEO on the list and, together with Rex Tillerson of ExxonMobil, one of only two representatives from the extractive industries.
Read The Herald’s full report here >>
Image, Marius Kloppers, Youtube
6 Comments
Meee
To both Sam and MC, fancy words don’t give you credit, you can argue that quality employees deserve top quality pay, to an extent I agree, but I have seen that some people who do not know how, or have not been taught how the western world views money, (as in the more I have the better ‘I may feel’). Explain to me how $10 to $20 Million per year in one persons pockets, benefits society when no one has the money to cover even a fraction of that?
MC
Fair comment Marion. Its always easier to comment if you just watch from the terraces, maybe even a little ignorant of what being a CEO of a multi-billion dollar project entails.
Remember you will aways have the poor. The problem of the poor is not a money problem. Its a mentality problem. This might be very painful or even unpalatable to many. No matter how much you give to some people; after a period of time they will get back to where they have always been; Poverty Boulevard!
Kudos Marion I like the way you think.
Meee
That level of money is idiotic, who needs 11 million to survive? If that level of money is what is required to employ a good CEO then the said CEO only cares for himself/herself and no one else. (AKA: I’m going to destroy your countries economy like we did the USA, so that I can have a few more million to add to my billions, screw you and the rest of the world, so long as I have more and more and more.)
Colleen
What a joke ,15 million in wages , and we have so many home less in Australia,
Shame on you Dr Kloppers !! and you will take a pay cut, give it to the needy Australians
Marion
@Colleen, if you worked as hard as Kloppers does, hours, stress, billion dollar decisions then I can assure you would have a different comment. I do agree that it is a massive salary but I am not going to judge because it would not be paid for no reason, not from a company like BHP!!!!
Sam
I agree with Marion. CEO’s job is not that easy. They deserve the total emolument given. They get the money for their business acumen and taking (supposed to) the appropriate decision at the right moment so that the shareholders can get the benefit and as a result the country gets benefited.