XSTRATA’S chief financial officer is to quit the miner following its £46bn takeover by Glencore, raising fears that other senior managers could follow him out of the merged group.
Trevor Reid, brought in as CFO when the company was set up in 2001, was due to take the same job at the new company Glencore Xstrata but stepped down after investors voted against a controversial package of retention bonuses.
Reid was due to receive around £11m in shares by 2014 as part of a gold-plated retention plan for senior Xstrata staff that was blocked by shareholders. He now leaves with a termination payment of £5.45m, which is part of his contractual entitlement after a change of control at the company.
The position is expected to be filled by Glencore’s chief financial officer Steven Kalmin, who had been due to be Reid’s deputy. Reid will act as a consultant to the combined group for up to six months following completion of the merger.
Xstrata CEO Mick Davis drafted in Reid when the company was set up in 2001, and among a handful of executives Reid helped to transform Xstrata from a $500m ferrochrome and zinc business into a globally diversified mining company with a market cap of $50bn.
During Reid’s tenure, Xstrata raised over $17bn from the global capital markets, completed $35bn of acquisitions in 40 separate transactions and developed more than 20 major expansions and new mining operations.
Hailing Reid’s contribution, Davis said: “Eleven years ago, I persuaded Trevor to leave a successful banking career to embark upon the transformation of a struggling company in a precarious financial position with limited options.
“Xstrata’s evolution into one of the world’s leading mining companies has exceeded even our initial ambitions and is a testament to Trevor’s skills and contribution as an executive director and CFO.”
Davis has also said he will quit the company after the merger, while chairman Sir John Bond said he would leave after shareholders voted against the proposed pay plan.