By Alex MacDonald
LONDON--Anglo American PLC's (AAL.LN) Chief Executive Cynthia
Carroll will receive shares worth around GBP1.3 million ($2
million) at current prices as part of her exit package in April and
will be paid additional sums thereafter under certain conditions,
according to a person familiar with the matter.
Ms. Carroll announced her plans to resign in October but offered
to stay in her role until a successor was chosen in order to
provide a smooth and orderly transition. Ms. Carroll stepped down
after bowing to shareholder criticism related in part to cost
overruns and delays at the company's flagship iron ore project in
Brazil.
The company announced last month its first annual net loss in
over a decade after taking a $4 billion impairment charge against
the value of its Brazilian Minas Rio iron ore project.
Upon her departure, Ms. Carroll will receive about 70,000 in
unvested bonus shares worth around GBP1.3 million at Anglo's
current share price, the person said. The award is being given
since she has been considered a "good leaver," the person said.
Ms. Carroll will also receive a GBP700,000 cash bonus in March
which is estimated to be about 60% less than the previous year's
bonus due to the company's lackluster performance in 2012, the
person said. The payment is not part of her exit package but rather
her entitlement for last year's performance, the person added.
As part of her exit package, Ms. Carroll will also be entitled
to this year's remaining portion of her GBP1.2 million annual
salary that hasn't already been paid, the person said. The monthly
payments will come to a halt in nine months or if she begins to
earn a salary elsewhere, the person said.
She is also due shares under the company's long-term incentive
plan which will only vest over a period of 12 months to two years
and if the company manages to meet certain performance metrics. The
shares, if granted in full, would amount to about GBP3.4 million at
the current share price.
Ms. Carroll will be replaced by AngloGold Ashanti Ltd's (ANG.JO)
Chief Executive Mark Cultifani on April 3 and will leave the
company at the end of that month.
Other outgoing CEOs such as Xstrata PLC's (XTA.LN) Mick Davis
are set to earn at least GBP8 million as part of their exit
packages. Mr. Davis will depart six months after the merger with
Glencore International PLC (GLEN.LN) in order to ensure an orderly
transition.
-Write to Alex MacDonald at alex.macdonald@dowjones.com
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