BHP Billiton executive share awards cut by 35%

As part of the company’s cost-cutting plan, BHP Billiton Chief Executive Andrew Mackenzie will voluntarily give up the ‘sign-on’ bonus of 50,000 share awards he was due to receive from when he joined the company.

According to The Australian, the reduction in executive remuneration will see BHP Billiton’s top executives lose out on more than $26 million in share grants, due to a 35% reduction in the number of shares paid out as part of its five-year long-term incentive plan (LTIP).

In a statement, BHP said these changes “reflect a more modest approach to remuneration befitting the times”.

The reduction will be carried out despite BHP Billiton outperforming its peers by 34.6% over the past five years.

Mackenzie’s salary is almost 25% less than that of his predecessor Marius Kloppers, the Wall Street Journal has reported. He will also receive a lower pension payout and a smaller maximum bonus than Kloppers.