Rio Tinto suffers the most from payroll fraud
Rio Tinto has been severely persecuted by its allies on the exit package in the hands of former chief executive Jean-Sébastien Jacques, one of the money launderers on the day of the corporate damages listed in the UK.
More than 60% of the votes cast at the annual meetings in Rio in London and Sydney opposed their report, which led to a major uprising this year against a company listed in the UK over pay.
Jacques and two fake officers resigned in September following the explosion at the site of 46,000-year-old Juukan Gorge in Western Australia to pave the way for a mine extension.
Although Jacques was denied bonuses of about $ 2.7m, his total salary last year increased by 20% to $ 7.2m. In addition they were allowed to keep the shares provided according to the long-term incentive program of more than $ 27m.
Suggestions for shareholders, however, are advisory and not binding, even in Australia if the payroll report is against 25% of people in two years, the committee in question must re-elect itself.
The revolt is a problem for Rio-based chairman Simon Thompson and his chief executive, who have been trying to repair ties with shareholders, who have been devastated by what has happened in Juukan Gorge about a year ago.
Although Rio was very large, it was one of the few UK companies that met with the terrorists.
For Indivior drug manufacturers, more than 38% of shareholders voted against the company’s report, retaining bonuses from their former boss, even though he was imprisoned for the US crisis. A fifth of the shareholders also voted against the appointment of Daniel Phelan, chairman of the remuneration committee.
About a quarter of investors in BAE Systems, Britain’s largest contractor, voted against the company’s compensation for its training to give its boss £ 2m in cash, after being tried by a colleague to kill him. About one-fifth of the shareholders in Vitec failed to support a small company’s small report on payment problems.
Participants in Genel Energy, named in London but oil producers in Kurdistan, also staged demonstrations. More than 42% of the votes were contested against the company’s salary and there were major protests against their 2020 report, including 2021 shares and bonuses.
Martin Gudgeon, chairman of the Genel Remuneration Committee, has resigned, while his chief financial officer, Esa Ikaheimonen, has also resigned from the board of trustees but has resumed his post as CFO.
The attacks are the biggest signs that stockbrokers are fulfilling their warning to punish companies that fail to pay, especially as a result of the epidemic.
At a joint venture in Rio, the $ 1.3tn oil fund in Norway and the UK’s Local Authority Pension Fund Forum, which oversees about 300bn of assets, were among voting against the report.
Based on the failed proposals, Rio said he would consult with shareholders and “consider” any “new offerings” on how to set up a payment plan.
In addition to the pay raid, more than half of Rio’s shareholders opposed the election of Megan Clark, the chairman of her standing committee.
Rio said it has developed a great deal of weight, skill and continuity that Clark is “bringing to the board” and was determined to remain “steady” at a critical time in the company.
Prior to the AGM meeting, a well-known Institutional Shareholder Services consultant urged participants to vote against the payroll report, saying that Rio must have used its influence to reduce the amount of “working shares” Jacques did. Glass Lewis, another senior proxy consultant, also told his clients to vote against the payment report.
Rio has defended the charges, saying the company could not “legally terminate the three supervisors on the grounds that they receive full pay”.
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Mr Thompson said Rio had strongly encouraged taxes based on developments in Juukan Gorge, citing the possibility of reimbursing bonus payments if they affected the use of public utilities.
He also said he understood “anger” due to high pay to former employers but said this was an “unintended consequence” of companies whose 70-80% of pay was adjusted for five years.
“We are in a strange time when CEOs are receiving most of their salaries when they leave,” he said.
With reports by Attracta Mooney and Nathalie Thomas