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Freeport-McMoRan (NYSE: FCX) announced Wednesday that Gerald J. Ford, non-executive chairman, will retire as a director, effective on the expiration of his current term, which ends in June 2021.
Company CEO Richard C. Adkerson was appointed as new chairman of the board.
Adkerson has served as chief executive officer since 2003 and as a member of the board since 2006. He currently serves as Chair of the International Council on Mining and Metals, having previously served as Chair from 2008-2011.
The board also appointed CFO Kathleen Quirk as president. Quirk has over 30 years of experience in the Freeport-McMoRan organization.
Freeport also announced the reinstatement of a cash divided on its common stock at a yearly rate of $0.30 a share. Prior to the suspension of dividend payments in April 2020, the cash dividend was $0.20 a share.
The board intends to declare a quarterly dividend of $0.075 per share, with the initial quarterly dividend expected to be paid on May 1, 2021, Freeport said.
The board has also adopted a new financial policy, under which, up to 50% of available cash flows generated after planned capital spending and distributions to noncontrolling interests would be allocated to shareholder returns and the balance to debt reduction and investments in value-enhancing growth projects.
The new payout policy will be implemented following achievement of a net debt target in the range of $3-$4 billion, excluding project debt for additional smelter capacity in Indonesia.
“Under current market conditions and with continued strong execution of our plans, we currently expect to reach this target in early 2022,” Freeport said in a press release.
Freeport has 1.46 billion common shares outstanding.
