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Rio Tinto proposes 56% pay jump for CEO as mining sector fights for talent
The miner said the overhaul is designed to attract and retain leadership as CEO pay at FTSE 100 companies rose 18% last year, Deloitte said.
- On October 28, Rio Tinto's board proposed increasing CEO Simon Trott's target remuneration package by 56% to £9.8 million, as the miner competes for talent amid surging pay at aerospace and energy transition firms.
- Rio Tinto expanded its peer benchmarking group to include US energy majors Chevron and ExxonMobil, as well as GE Aerospace, responding to competition for top executives as defense and aerospace firms offer higher compensation.
- Reflecting a compensation overhaul weighted to performance, Trott's maximum remuneration is proposed to grow 63% to £18.3 million, with short-term incentives rising to 300% of base salary and long-term targets jumping from 500 to 900%.
- Ben Wyatt, chair of Rio Tinto's remuneration committee, said the miner is consulting investors ahead of the policy update, though some shareholders expressed concern the proposal could fuel salary inflation and reflect poorly on the company.
- To come into effect, the expanded framework requires shareholder approval at next year's annual meeting, with Rio Tinto stating the package is designed to "attract and retain strong leadership in a competitive global market.
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EXCLUSIVE: Rio Tinto proposes 56% pay jump for CEO as mining sector fights for talent
Rio Tinto's , board has proposed increasing its CEO Simon Trott's target remuneration package by 56% to £9.8 million ($13.06 million), according to four people familiar with the matter and documents reviewed
·London, United Kingdom
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Total News Sources7
Leaning Left0Leaning Right2Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
C 67%
R 33%
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