Xstrata's chief financial officer is to quit the miner following its takeover by Glencore, becoming the first director to abandon ship after investors failed to approve a gold-plated retention plan as part of the deal.
Trevor Reid was due to receive almost £11m by 2014 under the controversial pay package. As it is, he will walk away with £5.45m, which the company said was his contractual entitlement after a change of control.
His departure will fuel fears of an exodus from Xstrata following the £50bn takeover. Although shareholders finally approved the deal last month, they rejected £140m of retention bonuses for managers, which one investor dubbed "egregious".
Reid had been due to stay on as CFO, but his future was thrown into doubt when it was announced that Xstrata chief executive Mick Davis would be replaced at the helm of the combined group by Glencore's current boss, Ivan Glasenberg. The CFO had a seat on the board at Xstrata, but would not at the combined group.
Reid is the third of Xstrata's top directors to announce his departure, following Davis and chairman Sir John Bond, who said he would step down after shareholders ignored his recommendation and twice voted against the pay plan he had supported.
Now 51, Reid was brought in by Davis when Xstrata was set up in 2001 and, with a tight-knit team of executives, helped build it into a diversified mining group. Davis said on Tuesday: "Eleven years ago, I persuaded Trevor to leave a successful banking career to embark upon the transformation of a struggling company in a precarious financial position with limited options. Xstrata's evolution has exceeded even our initial ambitions and is a testament to Trevor's skills and contribution as an executive director and CFO." Reid has agreed to stay on for six months to help with the integration.
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