Glencore defends pay of new chief Gary Nagle

Glencore has stood by its executive pay arrangements after the package for its new chief executive triggered a shareholder rebellion.

More than a quarter of investors that voted at the mining and commodities trading group’s annual meeting in April opposed its executive remuneration report after the disclosure of the pay deal for Gary Nagle, who took over in July this year.

Glencore said that it had since engaged with shareholders, as required under the UK corporate governance code, and that “those who voted against the policy expressed concerns primarily regarding the pay quantum for a new chief executive versus predecessor levels and peers (and based on the company’s relative market capitalisation at that time), and the performance orientation of the new restricted share plan”.

Nagle, 46, is to be paid a base salary of $1.8 million plus bonuses and restricted share awards that could take the total awarded in a year to $10.4 million. The restricted shares, worth up to 225 per cent of his salary, will vest subject to “a holistic review of performance” after three years at the discretion of the remuneration committee. Nagle will not be able to sell them until two years after he stands down as chief executive.