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BHP CEO pay drops 25% on worker fatality, financial performance

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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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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