There have been surprise personnel changes at the top of the newly merged Glencore Xstrata commodities giant during its first annual general meeting in Zug on Thursday.
Commentators say the changes have strengthened the control over the group of CEO Ivan Glasenberg, who headed Glencore before the merger.
Ahead of the meeting an early morning notice to the stock exchange announced that director Steve Robson – who had been up for re-election – had resigned with immediate effect. He had been a non-executive director of Xstrata since 2002.
And at the meeting itself, former Xstrata chairman John Bond announced without explanation that he had not been re-elected to the board. It is reported that 80.85 per cent of shareholders voting against him. Bond, who had been expected to chair the meeting, therefore handed over control to Tony Hayward the senior independent director and deputy chairman of Glencore Xstrata.
Hayward is the former head of the British oil giant BP who resigned from the company in the wake of the 2010 Deepwater Horizon oil spill in the Gulf of Mexico.
Trimming the fat
Bond had been criticised for his handling of the merger talks between the two companies, in particular for his proposal for a «golden handcuffs» deal worth $223 million for top Xstrata managers. He had already announced that he would step down once the board of the enlarged company had appointed a new independent chairman.
Bond issued a statement after the vote saying that he respected «the strong opposition of many people» to his handling of bonuses for Xstrata executives.
Three other Xstrata executives also failed to be elected to the board.
At the general meeting Glasenberg said the company had «a strong management team, which has a strong track record in creating shareholder value».
The Financial Times said Bond’s exit would give Glasenberg «a free hand to dramatically reshape Glencore Xstrata».
He had already announced that he would make savings mainly by closing Xstrata offices and reducing «management layers».
The merger of the two companies overcame its final hurdle in April after being on the table since 2012.
Xstrata CEO Mick Davis and its chief financial officer Trevor Reid had already resigned. All but two of the top 17 positions in the new company are held by former Glencore executives.
The company said the nominations committee would meet later on Thursday «to seek candidates for its board in addition to continuing a search process for a new chairman». It added that the board would consult with its «major external shareholders» in this matter.