Jacques’ $11.5m of incentive shares may stay intact

Jacques’ $11.5m of incentive shares may stay intact
Departing Rio Tinto chief executive Jean-Sebastien Jacques was due to be allocated shares worth $11.5 million in March under a long-term incentive plan due to vest in 2025, and remuneration experts say he stands a good chance of hanging on to those.But the Australian Council of Superannuation Investors has put Rio Tinto on notice not…

Departing Rio Tinto chief executive Jean-Sebastien Jacques was once attributable to be disbursed shares worth $11.5 million in March below a prolonged-term incentive opinion attributable to vest in 2025, and remuneration experts narrate he stands a factual chance of striking on to those.

However the Australian Council of Superannuation Investors has set apart Rio Tinto on glance no longer to get vast separation payouts to its trio of departing senior executives, who also consist of iron ore boss Chris Salisbury and company affairs chief Simone Niven.

Jean-Sebastien Jacques, iron ore boss Chris Salisbury and company affairs chief Simone Niven are leaving attributable to the destruction of frail rock shelters at the Juukan Gorge. PKKP Aboriginal Corporation

Govt pay and board governance specialist Guerdon Associates talked about that usually senior executives left firms with incentives aloof on foot and enviornment to performance overview.

Guerdon director Michael Robinson talked about it was once usually handiest in cases the attach extreme misdemeanours, fraud, maleficence or heart-broken performance that executives departed with out incentives on foot.

“They usually cease on foot and are tested two or three years out or whatever it is,” he talked about.

Departing Rio Tinto chief executive Jean-Sebastien Jacques was once attributable to be disbursed shares worth $11.5 million in March below a prolonged-term incentive opinion attributable to vest in 2025, and remuneration experts narrate he stands a factual chance of striking on to those.

However the Australian Council of Superannuation Investors has set apart Rio Tinto on glance no longer to get vast separation payouts to its trio of departing senior executives, who also consist of iron ore boss Chris Salisbury and company affairs chief Simone Niven.

Jean-Sebastien Jacques, iron ore boss Chris Salisbury and company affairs chief Simone Niven are leaving attributable to the destruction of frail rock shelters at the Juukan Gorge. PKKP Aboriginal Corporation

Govt pay and board governance specialist Guerdon Associates talked about that usually senior executives left firms with incentives aloof on foot and enviornment to performance overview.

Guerdon director Michael Robinson talked about it was once usually handiest in cases the attach extreme misdemeanours, fraud, maleficence or heart-broken performance that executives departed with out incentives on foot.

“They usually cease on foot and are tested two or three years out or whatever it is,” he talked about.

However ACSI chief executive Louise Davidson talked about there desires to be no financial favours for the three, who are leaving as penance for permitting the corporate to ruin irreplaceable 46,000-year-earlier skool caves at Juukan Gorge in Western Australia.

“Investors will proceed to amass with Rio Tinto to admire how the corporate will prepare this transition length,” she talked about.

“We are in a position to even be taking a leer carefully at the separation arrangements, with the expectation that any exit won't present a windfall for executives on their departure.”

Mr Jacques already owned 97,578 Rio shares outright at December 31, worth about $9.73 million this day. Mr Salisbury had 38,188 shares and Ms Niven 10,077.

Departing by mutual settlement

Jean-Sebastien Jacques is already space to lose incentive bonuses below Rio sanctions.  Bloomberg

All three had been in line for prolonged-term incentive opinion bonuses attributable to vest in 2025 at the originate of the year. A Rio policy efficient from January 1 requires executive directors care for Mr Jacques to preserve a keeping for 2 years after leaving the corporate.

Under the Rio sanctions announced in August and in step with the scale of bonuses paid to the three executives at the live of 2019, Mr Jacques regarded space to forgo conclude to $5 million of bonuses, whereas Ms Niven and Mr Salisbury had been space to forgo conclude to $1 million every.

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Mr Jacques earned £5.79 million ($11.4 million) in 2019, including £1.48 million in mounted payments and the comfort from prolonged and short term incentive plans.

Mr Salisbury's wrong wage for 2020 was once $1.05 million and Ms Niven's wrong wage £451,000 ($794,000).

Rio talked about on Friday that every particular person three executives had been departing by mutual settlement as obvious from being sacked, and indicated they’d remain eligible for prolonged-term incentives.

They had been stripped of the non permanent half of their annual bonuses in August as half of Rio’s extensively criticised first strive at a response to the destruction of rock shelters at Juukan Gorge.

“The separation terms, including the retention of prolonged-term incentive awards, for all three folks are in accordance with our neighborhood remuneration policy and their acceptable contractual terms,” Rio talked about on Friday.

“They’ll proceed to be enviornment to the financial penalties previously disclosed in the board evaluate. The predominant factors of the separation arrangements will be disclosed as acceptable.”

Under termination clauses in its remuneration policy, Rio has the discretionary energy to claw aid half bonuses ahead of they are vested in cases the attach “actions also can consequence in reputational effort to the neighborhood”.

Australasian Centre for Company Responsibility ethical counsel James Fitzgerald talked about that if the three executives failed to sleep receiving bonus half parcels it will probably per chance beg the search info from of what it will probably per chance pick for Rio to bellow such incentives.

Mr Fitzgerald talked about it desires to be remembered that for a truly prolonged time Mr Jacques was once bearing in mind withholding incentives attributable to his predecessor, Sam Walsh.

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