Dumped … Tom AlbaneseTHE dumped Rio Tinto boss Tom Albanese, who once declared Australia a high-risk country for business, took home more than $30 million during his five-year tenure as chief executive.
Mr Albanese, who was axed from the top job on Thursday, will depart the Anglo-Australian mining giant after nearly six years in the role.
In 2010, Mr Albanese hit the spotlight when he said the federal government’s proposed resource rent tax posed a bigger sovereign risk for the company than any of its projects in developing countries.
”From my own perspective, this is my No.1 sovereign risk issue on a global basis,” he said in May 2010, during the tug of war between the government and mining companies over the proposed 40 per cent profits tax. Ultimately it was a coal project in Mozambique that cost Mr Albanese his job.
He will leave Rio without a bonus for the third straight year. He will not receive any lump-sum payment or short-term performance bonuses for last year or this one, the company said on Thursday.
But he had a pension worth $722,000 a year at the end of 2011, and held 252,285 shares in Rio valued at $16.7 million based on Friday’s close.
The 55-year-old American was paid a base salary of a little more than $10.6 million in total over the five years, with unexercised share options from 2003 to 2009 worth $16.2 million.
In addition, his 2009 performance share plan, which could vest next month, has an indicative value of $2.4 million.
Investors reacted positively to dumping of Mr Albanese by the chairman, Jan du Plessis. On the ASX on Friday, the shares closed 2.7 per cent higher at $66.35.
The UBS resources analyst Glyn Lawcock welcomed the elevation of Sam Walsh to chief executive, calling him a ”safe pair of hands”.
Weekend Business – The Fall Guy, pages 6-8
The original release of this article first appeared on the website of Hangzhou Night Net.