Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Commodities trader Glencore International (LON: GLEN) has reportedly committed to appointing a female director to the new board as soon as the merger with giant miner Xstrata (LON: XTA) is completed.
According to Susan Vinnicombe, co-author of the Cranfield School of Management’s annual female board representation report, the lack female presence in the industry is a problem for metals companies seeking women with relevant experience to appoint to their boards.
The Telegraph quotes Vinnicombe saying that Glencore has promised it will appoint a woman to the board, which will make the number of FTSE 100 companies with all-male boards drop to five.
FTSE 100 is the index of the UK’s largest 100 companies, and it is considered a key indicator often referred to by financial experts.
The announcement, says the newspaper, coincides with Britain’s two-year anniversary of Lord Davies’ “women on boards” report. The initiative, launched in 2011 and backed by the Government, called for FTSE 100 companies to increase female board representation to 25% by 2015, up from 12.5% in 2010.
“When Glencore and Xstrata merge, the number of FTSE 100 companies without women on boards will drop to six,” said Vinnicombe, adding that when Glencore hires the new board member it will be down to five.
Cynthia Carroll, the only woman to run a major mining company, is about to step down as chief executive of Anglo American (LON: AAL).
Of the seven companies on the FTSE 100 with all-male boards, five of them (Antofagasta Minerals, Glencore, Xstrata, Kazakhmys and Vedanta) are miners.
Currently Glencore has a woman, Anita Zeng, in a top position. She runs the company’s office in China.
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