Anglo American Abandons Plan to Pay Executives Millions in Bonuses Amid Backlash from Investors
In a surprise move, London-listed mining giant Anglo American has scrapped its plan to award its top executives multimillion-pound bonuses if its planned $50 billion merger with Canadian rival Teck Resources is completed.
The company had sought shareholder approval for a plan that would have given its CEO, Duncan Wanblad, a £8.5 million share bonus upon completion of the deal. Other senior executives were also incentivized through the plan, which would have updated long-term awards made in 2024 and 2025 to ensure they received at least 62.5% of share awards when the merger was finalized.
Anglo American had argued that its pay structures needed to be "fully aligned" with a successful delivery of the merger, which it believed required exceptional performance from its senior management during a period of significant change. However, investors had expressed concerns over the proposed bonuses, with Institutional Shareholder Services (ISS) recommending a vote in favor of the merger but criticizing the linking of variable incentives to transaction completion as not good practice.
The move comes just days before investors in Anglo and Teck are set to vote on the proposed merger, which would create one of the biggest copper producers in the world. The deal emerged after Wanblad successfully fended off a series of takeover attempts by larger rival BHP last year, pushing Anglo American to restructure the group and sell its diamond business.
The U-turn has sent shares in Anglo American slipping 0.9% in early trading on Monday, but the company's stock is still up over 40% this year. The abandonment of the bonus plan may help alleviate concerns among investors, who had expressed skepticism over the proposed payouts amid a growing backlash against executive pay.
In a surprise move, London-listed mining giant Anglo American has scrapped its plan to award its top executives multimillion-pound bonuses if its planned $50 billion merger with Canadian rival Teck Resources is completed.
The company had sought shareholder approval for a plan that would have given its CEO, Duncan Wanblad, a £8.5 million share bonus upon completion of the deal. Other senior executives were also incentivized through the plan, which would have updated long-term awards made in 2024 and 2025 to ensure they received at least 62.5% of share awards when the merger was finalized.
Anglo American had argued that its pay structures needed to be "fully aligned" with a successful delivery of the merger, which it believed required exceptional performance from its senior management during a period of significant change. However, investors had expressed concerns over the proposed bonuses, with Institutional Shareholder Services (ISS) recommending a vote in favor of the merger but criticizing the linking of variable incentives to transaction completion as not good practice.
The move comes just days before investors in Anglo and Teck are set to vote on the proposed merger, which would create one of the biggest copper producers in the world. The deal emerged after Wanblad successfully fended off a series of takeover attempts by larger rival BHP last year, pushing Anglo American to restructure the group and sell its diamond business.
The U-turn has sent shares in Anglo American slipping 0.9% in early trading on Monday, but the company's stock is still up over 40% this year. The abandonment of the bonus plan may help alleviate concerns among investors, who had expressed skepticism over the proposed payouts amid a growing backlash against executive pay.
Back in my day we didn't need all those fancy bonuses to motivate people. I mean, I know times have changed and stuff, but come on... £8.5 million for one guy? That's just crazy talk! 
And now they're pulling the plan because of all the backlash from investors? Well, good riddance if you ask me. Maybe it's time to rethink how we do things around here. I mean, I'm not saying executives shouldn't get paid or anything, but a little bit of perspective never hurt anyone, right? 
The problem is, people just get too comfortable and start thinking they can buy happiness with a fat bonus check. Newsflash: it's just money! 
You can't put a price on being a good leader... unless you're trying to bribe people, I guess 
. Anyway, kudos to the investors for speaking up, maybe we'll see some real change around here. Fingers crossed! 
. I mean, 62.5% of share awards? That's like saying "we'll give you the majority of our profits if you just deliver a successful merger" 
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. But hey, I guess that's progress? The fact that the company's stock is still up 40% this year shows that investors are willing to give them a break... for now 
and now its all about performance-based pay? newsflash: CEOs arent exactly known for being risk-takers... they're more like, "let's stick to the plan" kinda guys 
! Like, I get it, CEOs gotta be incentivized to do their jobs, but £8.5 million is just insane 
. I mean, come on, can't they just focus on getting the job done and not worry about lining their own pockets? It's all about prioritizing profits over people, am I right? 
those CEOs think they can just get away with getting richer off the backs of the company's success and not have to back it up with actual performance? i dont get why companies still do that, its like they're trying to make a joke out of it. anyway, this might be a good sign for the workers at Anglo American, less chance now of them having to sell some more assets to keep the company afloat 
Duncan Wanblad must've realized that all those millions in bonuses were gonna rub a lot of people the wrong way. This move will probably keep them on the right side of the shareholders 
Now if only they'd use that saved cash to boost pay for the regular folk who make their jobs happen