BHP boss bucks bonus

Marius Kloppers, CEO of mining giant BHP Billiton, has decided to waive his annual bonus in light of a recent forecast in which BHP's revenues are projected to drop 38%, says a report by The Sydney Morning Herald.

The report also suggests that Klopper's decision is in response to the company's recent poor performing shale unit and rejected deals which include "hostile bids for Rio Tinto and Potash Corp of Saskatchewan."

BHP, due to report earnings tomorrow, is suffering from a decline in commodity prices as growth slows in China and Europe. This report will include a $US450 million charge against BHP's shale assets, which Kloppers bought for $US20 billion last year. Citigroup valued them at $US12.3 billion this month, reflecting a drop in gas prices. Kloppers, 49, took home $US11.6 million in salary, benefits and bonuses in the 2011 fiscal year.

The move follows the act of Rio Tinto's big CEO Tom Albanese, who declined his bonus after the company's aluminum assets plummeted earlier this year.

Not long ago Kloppers made Barron's list of the world's 30 best CEOs.  Kloppers was the only mining CEO on the list and, together with Rex Tillerson of ExxonMobil, one of only two representatives from the extractive industries.

Read The Herald's full report here >>

 

Image, Marius Kloppers, Youtube