Xstrata Paid CEO Davis $5.4 Million in 2011, Annual Report Shows

Xstrata Plc (XTA), the biggest exporter of coal for power stations, paid Chief Executive Officer Mick Davis $5.4 million in salary, bonuses and benefits last year, the company’s annual report shows.

Davis’s remuneration included $2.29 million in salary and fees and a $2.26 million cash bonus. The figure is 13 percent higher than in 2010, excluding a $4.29 million deferred bonus paid to Davis that year.

Davis, 54, would be CEO of a combined Xstrata-Glencore International Plc (GLEN) should their proposed merger, announced Feb. 7, proceed. Glencore CEO Ivan Glasenberg is set to be deputy CEO and president of the combined company.

Xstrata, based in Zug, Switzerland, posted a 12 percent gain in net income before one-time items to $5.79 billion last year. Its shares dropped 36 percent in London trading.

Chief Financial Officer Trevor Reid’s total payments were $2.55 million, including salary and fees of $1.2 million and a $1.18 million cash bonus. That’s an increase of 11 percent on 2010, if his deferred bonus of $2.16 million paid that year is excluded. The figures are converted from payments made in pounds, Xstrata said in the report.

To contact the reporter on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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