Daily Management Review

BHP Group cuts remuneration for its CEO due to coronavirus


The coronavirus pandemic, which has driven up spending on key BHP Group mining projects and reduced production, has also negatively affected the remuneration of its CEO Mike Henry.

The results for the fiscal year that ended in June 2020, partly due to the coronavirus, were below the targets of the BHP CEO remuneration policy, the company said in its annual report.

Henry received a $ 1.96 million reward from the last financial year in addition to salary and other benefits, including pension contributions, which totaled $ 941,000. In addition, Henry received $ 3.17 million as part of a long-term incentive program for 2015, when he was still in charge of BHP's coal operations.

Henry has been serving as CEO of BHP since January 1, 2020, and therefore his remuneration covers the period from January 1 to June 30.

In August, BHP said the fallout from the coronavirus pandemic cost it $ 348 before taxes last fiscal year. This includes expenses of $ 183 million to relocate employees, introduce disease detection measures and improve hygiene standards.

The BHP Compensation Committee decided that while the COVID-19 pandemic was out of management's control, the direct costs of the company and the negative impact on production volumes should have an impact on the return on equity used to measure the performance of executives.

Henry's efforts to keep employees safe were praised by the Compensation Committee, which was reflected in the CEO Compensation.

source: bloomberg.com