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Pay Of Rio Tinto Directors Sparks Concern

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The Daily Telegraph

Helia Ebrahimi

22nd May 2011

Full Article

One of Rio Tinto's largest investors has expressed anger that the company has failed to respond to a major "no" vote against directors' pay packages which have increased substantially over the past year.

Harry Kenyon-Slaney, head of Rio Tinto's diamonds division, more than doubled his pay to £1.8m.

Standard Life wants sweeping pay reforms at the mining giant within a year. But the company says it will not back down from its position despite the AGM vote.

At the company's AGM last month, Standard Life called on the company to respond to criticism and commit to changing the pay scheme by 2012.

But Rio chairman Jan Du Plessis said Rio would review the situation within 18 months or come up with "a package of arrangements" to be endorsed by shareholders in two years' time.

Interesting that share holders are actually starting to take an interest in senior executive pay.. also interesting the apparent level of sheer defiance by the management in the face of their owners.

I personally hope this is the start of many more such questions about top exec pay levels..

[Mods.. not strictly on topic but could you leave on the front page for an hour or so?]

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But what can they do?

Unless all the banksters running all the pension funds take offence the gravy train will keep on running.

Edited by MC Fur Q

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But what can they do?

Unless all the banksters running all the pension funds take offense the gravy train will keep on running.

That is exactly my point.. the bankster (or pension fund to be more specific) majority share holders at Rio are questioning senior management pay. Management are sticking two fingers up.. but presumably the shareholders have the power to replace any of the directors they see fit.

I expect part of the issue is that (I believe) it is usually very expensive to get rid of directors (they get big pay-offs).. but the fact that shareholders are starting to ask questions is a good start as far as I can tell.

Next perhaps a few sackings for gross misconduct (awarding pay rises against the will of the owners must surely be tantamount to theft).

All I can say is.. good effort Mr Guy Jubb of Standard Life. I hope more of your peers follow your fine, proactive example.

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They are entitled to these pay packets.

Moreso than the bankers because

1.These companies were not bailed out

2.They actually produce something tangible

3.They do not accrue profits by looting taxpayers

Edited by Ruffneck

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