Chris Hughes, Columnist

Mining's $45 Million Man Eyes an Earth-Shattering Return

Can Mick Davis really tune into the concerns of Rio Tinto shareholders?

November 14, 2017 at 12:10 PM UTC

Chris Hughes is a Bloomberg Opinion columnist covering deals. Previously, he worked for Reuters Breakingviews, the Financial Times and the Independent newspaper.

1510662997_mick — Photographer: Gianluca Colla/Bloomberg via Getty Images

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The shortlist for the next chair of Rio Tinto Plc will incense the corporate governance crowd. At the top is Mick Davis, former CEO of Xstrata Plc. His association with high boardroom pay makes him a divisive candidate.

Davis drew criticism at Xstrata for remuneration well above industry norms. The attacks came to a head when he was offered a $45 million retention plan to stay with the company after a proposed merger with Glencore Plc in 2012. Shareholders later resoundingly vetoed the package, and embarrassed Xstrata's board by pushing for more generous financial terms. The deal had to be recast as a takeover by Glencore.