Anglo American Raises CEO Cutifani’s Pay 3% to $2 Million

Anglo American Plc (AAL) increased the base salary of Chief Executive Officer Mark Cutifani by 3 percent as he proceeds with a review of the mining company’s operations from Australia to Canada.

Cutifani’s base salary will rise to 1.24 million pounds ($2 million) in 2014, London-based Anglo said in its annual report published today. He received a total of 5.3 million pounds last year, including cash and share bonuses of 1.2 million pounds.

Cutifani became CEO in April, replacing Cynthia Carroll, who resigned amid cost overruns at Anglo’s Minas-Rio iron ore project in Brazil. He has set the goal of improving Anglo’s return on capital employed to at least 15 percent by 2016 from 11 percent in 2013.

Minas Rio is 84 percent complete and remains on target to ship its first ore at the end of this year, Chairman John Parker said in the report. “Its completion will ease our capital commitments from 2015 onwards and should also enhance our free cash flow,” he said.

One-fourth of Anglo’s board will be female by the time the company has held its annual general meeting next month, Parker said. At the end of 2013, women accounted for 23 percent of Anglo’s managers, while 16 percent of the overall workforce was female, the company said in the report.

Chief Financial Officer Rene Medori received total payment of 2.3 million pounds for last year, Anglo said. Medori’s salary was also increased by 3 percent to 788,000 pounds for 2014.

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

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

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