Anglo American has scrapped plans to offer its top executives substantial bonuses if a $50 billion mega-merger with Canadian miner Teck Resources goes through after investors raised concerns. The move comes as shareholders vote on the proposed deal, which would create a copper-producing giant and marks one of the largest mergers in the mining sector.
The plan had been designed to incentivize senior executives by offering them significant share bonuses worth millions of dollars if the merger was completed. However, Institutional Shareholder Services (ISS) had previously recommended investors vote in favor of the deal but expressed concerns over the proposed variable incentives linked to transaction completion.
Instead, Anglo American has decided to engage further with investors on director pay before its annual general meeting next year. The company cited a need for "full alignment" between its pay structures and the success of the merger, as well as wanting to support the retention of senior management during a period of significant change.
The decision follows a backlash from several influential voices, including ISS, which deemed the high proposed payout "not considered good practice". Anglo American's shares have slipped 0.9% in early trading on Monday but remain up by more than 40% so far this year.
The mega-merger is seen as a multibillion-dollar bet on the global copper market, with copper playing a crucial role in low-carbon technologies such as solar farms and electric cars. The deal would make Anglo American one of the largest copper producers in the world if approved.
The plan had been designed to incentivize senior executives by offering them significant share bonuses worth millions of dollars if the merger was completed. However, Institutional Shareholder Services (ISS) had previously recommended investors vote in favor of the deal but expressed concerns over the proposed variable incentives linked to transaction completion.
Instead, Anglo American has decided to engage further with investors on director pay before its annual general meeting next year. The company cited a need for "full alignment" between its pay structures and the success of the merger, as well as wanting to support the retention of senior management during a period of significant change.
The decision follows a backlash from several influential voices, including ISS, which deemed the high proposed payout "not considered good practice". Anglo American's shares have slipped 0.9% in early trading on Monday but remain up by more than 40% so far this year.
The mega-merger is seen as a multibillion-dollar bet on the global copper market, with copper playing a crucial role in low-carbon technologies such as solar farms and electric cars. The deal would make Anglo American one of the largest copper producers in the world if approved.
...think it's a good move, investors were gettin all salty about the variable incentives linked to completion 
. i mean, who needs millions of dollars tied to some merger deal anyway? it's all about alignment and retention, right? 
plus, copper is lookin like the new oil, so maybe anglo american is just future proofin themselves 
. but seriously, let's see how this plays out, maybe they'll come back with a better plan 
[gifs of people looking surprised and confused] 
They're going to have an extra chat with the investors before they vote on the deal, because who doesn't love a little more back-and-forth in the boardroom? 
then whats left for these shareholders? 
they're keeping it real and avoiding those crazy bonuses that were like, hello just because you want to merge with Teck Resources doesn't mean you get a million-dollar reward 
. Still, I think the move shows they're listening to investor concerns and wanting to get their directors' pay structure in line with the company's goals 
... it's all about that "full alignment" thingy 
!
. anyway, hope it all works out for Anglo American and Teck Resources - copper's an important resource for the future 
.
. And honestly, I think it's a good lesson in the importance of transparency and accountability in business. If top execs are just gonna get a blank check, who knows what kind of decisions they'll make? Transparency is key when it comes to leadership - if you're not willing to put your money where your mouth is, then maybe you shouldn't be leading the pack 
. and honestly, i'm not sure why this is such a big deal either... copper prices have been all over the place lately 
. but at the same time, it does feel kinda bad for those top execs who were counting on that sweet bonus cash 
. fingers crossed it gets approved and we see some major gains! 
), and it seems like a solid bet for copper prices. But hey, the market's never predictable, so we'll just have to wait and see how it all plays out 
. One thing's for sure – if this merger goes through, Anglo American's gonna be a major player in the industry 
!
.
... you know, the one where they explore weird food combinations? Like, have you ever tried peanut butter and pickles? Sounds crazy, right? But apparently it's a thing! Anyway, back to Anglo American and their merger plans. I guess it's kinda weird that they're going back on the bonuses idea. You'd think companies would just offer big payouts to get people excited about working hard, but I guess that's not always how it goes down 
. its like anglo american wants to control everything... and whats with the lack of transparency? they cant just keep changing the rules mid game 
. i think it would be cool if they came clean about their reasons and let investors decide for themselves