Anglo American, operator of diamond miner De Beers, has announced that it plans to cap executive annual bonuses “following a shareholder revolt last year over high payouts even when the company’s share price had crashed”, according to Mining Weekly.
The company announced that it will reduce CEO Mark Cutifani’s maximum annual bonus to 300% from 350% of basic salary – in line with other executive directors. This means that the limit for Cutifani’s bonus is £13.1 million ($16 million).
In addition, Anglo American said that the value of long-term incentive plans (LTIP)” would be capped at twice the face value of the award at the time of vesting”, to avoid gains by share price swings. Additionally, after an executive salary freeze in 2016, Anglo American said it was increasing executive directors’ salaries in 2017 by 2%.
