Anglo American Gets Only 84.6% Approval For Remuneration Report
04/20/2012| 11:17am US/Eastern
Anglo American PLC (>> Anglo American plc) said Friday that all resolutions at its annual general meeting were passed, but only 84.6% of votes went in favor of approving the director's remuneration report.
This compares with 94.3% approval for last year's report, according to Dow Jones Newswires calculations.
During the company's annual general meeting Thursday several shareholders voiced concern about the report, with one of them questioning the size of Chief Executive Cynthia Carroll's pay package.
Carroll received a 44% rise in her total pay in 2011, taking it to GBP8.78 million. The figure included a 4% rise in basic salary to GBP1.17 million, a cash bonus of close to a GBP1 million, and benefits in kind of GBP42,000 for driver allowance and medical insurance among other things, and a pension contribution.
It also included share awards amounting to GBP6.25 million, up 49% on the year. The value of the shares was calculated based on the share price at the time of the awards, which is up 31% on average compared with 2010.
John Parker, Anglo American's chairman, defended the board's decision on Carroll's pay package.
"Anglo non-executive directors are very careful people and they take great care in ensure that we don't pay extravagant salaries in relation" to the rest of the industry, he said at the annual meeting.
"We have had a record year and that is what has driven [the] performance bonus. When we've had good years the rewards go up and they go down in bad years," he said.
Tanzania's largest gold producer, African Barrick Gold PLC (>> African Barrick Gold PLC) also got a low shareholder approval rating on its remuneration report, with 83.3% voting in favor of the report at the company's annual general meeting Thursday.
-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; email@example.com
(Rory Gallivan in London contributed to this story.)