MELBOURNE (Reuters) - BHP Billiton Chief Executive Andrew Mackenzie received a $100,000 pay rise in the last financial year but missed out on a higher increase after two fatalities and lower than targeted output of key commodities, BHP said on Tuesday.
The increase bumped up Mackenzie’s pay to $4.66 million from $4.55 million a year earlier. Target remuneration stood at $7.72 million with a maximum of $13.1 million the in the case of “significant outperformance”, BHP said in its annual report.
For the coming year, Mackenzie’s base salary will remain at $1.7 million, where it has been frozen since he was appointed to the top job in 2013. The rest of his remuneration is based on meeting a mix of short and long term incentive targets.
The pay increase took into account two fatalities: at the Goonyella Riverside coking coal mine in the Australian state of Queensland in August 2017, and at the Permian Basin Shale operations in West Texas in November last year, BHP said in the report.
It also reflected overall volumes of coal, iron ore and copper that fell short of the miner’s “stretch” targets.
BHP said its remuneration committee considered Mackenzie’s “strong performance” against individual objectives, including the divestment of the company’s onshore shale assets, and board approvals for the Spence copper and South Flank iron ore expansions in Chile and Australia respectively.
BHP posted record iron ore output for fiscal 2018 as greater productivity lifted production by 3 percent, in line or beating analyst forecasts. Full-year production came in at 275 million tonnes, at the lower end of BHP’s 273-283 million tonnes target.
In line with the approach for Mackenzie, the base salaries and total target remuneration packages for all other executive key management personnel will also be held constant for this financial year, BHP said.
(Corrects spelling of Billiton in first paragraph)
Reporting by Melanie Burton; editing by Richard Pullin