| Fri 23 May 2003, 9:31 | | Gilbertson payout slap in face for BHP shareholder |
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May 23, 2003
London and Johannesburg - BHP Billiton, the world's largest mining company, has finally agreed to pay Brian Gilbertson, its former chief executive, more than £4.2 million for six months of service.
This is considerably more than the $5 million, including benefits, Gilbertson was paid last year.
BHP Billiton said Gilbertson, whose contract should have expired in June 2005, would receive another £150 000 for relocation expenses, could claim a pension worth £602 575 a year and retain a third of the 760 110 shares he is entitled to after leaving the group.
Both Gilbertson and his wife, Rensch, will continue to receive medical insurance until June 2005.
The agreement, which took close to four months to conclude, is lower than the estimated $17 million final payout value feared by international shareholder organisations after Gilbertson's premature exit in January this year.
"The delay in settling the matter reflected differences between us about the contract," said Don Argus, BHP Billiton's current chairman.
Argus said Gilbertson's entitlement had not been increased as a result of, and was unrelated to, his termination
. Gilbertson would have been entitled to these superannuation payments irrespective of the circumstances in which he left the company.
International shareholder groups warned BHP Billiton against being too generous when it settled Gilbertson's severance package after Paul Anderson, Gilbertson's predecessor, received an estimated $10 million golden handshake when he left the same job in July last year.
"This is another slap in the face for BHP shareholders," said Australian senator Stephen Conroy, a political party spokesperson on financial services.
"After obscene payouts to former chief executives, they've now got to swallow this payment. Clearly, there is no performance basis for this payout for six months' work."
Last week Gilbertson resurfaced at Lonmin, where he has been hired as a consultant.
BHP Billiton shares rose 55c to R39.05 in Johannesburg yesterday. - Bloomberg and Sherilee Bridge
