* Trevor Reid to stay on as consultant for six months
* New Glenstrata CFO expected to be Glencore's Kalmin-source
* Sources, analysts play down fears of Xstrata exodus
By Clara Ferreira-Marques
LONDON, Dec 4 Xstrata's veteran finance
director has decided against remaining at the miner after its
takeover by Glencore, becoming the first top manager to announce
his departure since shareholders sealed the $31 billion deal.
Former banker Trevor Reid is one of a handful of executives
who built Xstrata into a $50 billion diversified mining group
over the past decade, and he had been due to stay on as chief
financial officer after the merger with Glencore, the
world's largest diversified commodities trader.
But his position has been in doubt since Mick Davis, the
miner's long-serving chief executive, was replaced at the helm
of Glencore-Xstrata by Glencore's current boss, Ivan Glasenberg.
While not unexpected given his close partnership with Davis,
Reid's departure could revive the debate over the risk of
significant departures from Xstrata after investors voted down a
controversial 140 million pound ($225 million) retention plan
for its managers.
Under his two-year retention deal, Reid would have received
almost 11 million pounds ($17.7 million) by 2014.
Reid is expected to be replaced by Glencore's chief
financial officer, Australian Steven Kalmin, who had been due to
be Reid's deputy, a source familiar with the matter said.
Reid, who will stay on as a consultant for six months to
help with the integration, is the third of Xstrata's top three
figures to announce his departure.
Chairman John Bond said late last month he would step down,
just hours after shareholders ignored his recommendations and
twice voted against the pay plan he had supported.
Davis' departure was announced in September, after
Glencore's Glasenberg became the nominated chief executive of
the combined group following a deal that improved the terms of
the takeover. Davis, one of the best-known names in the
industry, announced he would leave after the deal was done.
Industry sources and analysts played down fears of an
"exodus" at Xstrata on Tuesday.
"Glencore knows how to look after their own," said one
analyst who declined to be named, adding retention deals would
likely be struck individually with key executives.
Departures could hurt Xstrata as it moves from a period of
growth driven by deals into a period of growth driven by its own
mines, with several large, complex projects coming through.
Several senior Xstrata executives have sold shares in recent
days - taking advantage of a window of opportunity after what
was virtually a year-long offer period - including zinc boss
Santiago Zalumbide and copper chief Charlie Sartrain.
Reid was brought in by Davis at Xstrata's inception in 2001.
The two sketched out what would become Xstrata in the back of a
taxi and started in a JP Morgan basement. With a tight-knit team
of executives, they built the company from a $500 million
ferrochrome and zinc business into a global, diversified miner.
"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," Davis said.
"Xstrata's evolution ... has exceeded even our initial
ambitions and is a testament to Trevor's skills and contribution
as an executive director and CFO."
At 1430 GMT, Xstrata shares were down 0.6 percent at 1,027.5
pence, while Glencore's were down 0.4 percent at 342 pence, both
lagging a slightly firmer UK benchmark FTSE-100 index