BHP CEO pay drops 25% on worker fatality, financial performance
BHP's CEO Andrew Mackenzie saw his pay down 25% this year compared to the $4.657 million he earned a year ago due to a fatality Saraji coal mine in Queensland, Australia.
The metrics used to award Mackenzie's total earnings from BHP was spelled out in details in BHP's annual report, which was released today. CEO performance is based on a three categories: finance; a health and safety category (HSEC); and an individual category that includes of variety of metrics.
The compensation commitee reduced Mackenzie's copensation based on his HSEC score.
"This outcome took into account HSEC performance, which primarily reflected the tragic fatality that occurred at the Saraji coal mine in Queensland, Australia in December 2018. The Committee took advice from the Sustainability Committee, giving the Group’s safety performance the greatest weighting in the HSEC category," writes BHP in its annual report.
A 49-year-old man died on Dec. 31, 2018 at the Saraji coal mine when a dozer he was operating rolled from an elevated position, reported Australian Mining.
The compensation commitee also stated that controllable financial performance was below target, due to operational issues which resulted in lower production across the group.
The overall financial picture was mostly rosy. Higher iron ore prices for most of the year helped BHP Billiton to a EBITDA of US$23 billion at a margin of 53 per cent. Underlying attributable profit was $9.5 billion.