The personal fortune of Andrew Mackenzie, the CEO of BHP Billiton, has suffered along with the rest of the mining industry.
His annual pay for 2016 was cut in half to $US2.24 million ($A2.97 million) as the world’s biggest miner posted record losses and cut dividends by three-quarters in a low commodity price world.
His base pay of $US1.7 million has been frozen since 2015. Last financial year he also received benefits of $116,000 ($A153,000), including private family health insurance, and pension payments of $425,000 ($A560,000).
This brought his 2016 total payout to $US2.24 million ($A2.97 million) compared to $US4.58 million ($A6 million) the year before.
According to BHP’s annual report released today, the reason for the big fall was the failure of short and long term incentive packages.
The short term incentives, which were $US2.31 million ($A3 million) in 2015 and are partly based on underlying profit results plus personal performance, came in at zero.
And for long term incentives, Mackenzie’s 158,290 share awards from the 2011 scheme did not vest.
He missed the underlying attributable profit target of $US3.5 billion ($A4.6 billion) by a long way. It came in at $US1.215 billion ($A1.6 billion), an 80% drop on the previous year.
In August, BHP posted a loss of $US6.385 billion ($A8.28 billion) for the full year to June, its biggest in history. Its full year dividend was 30 US cents, a 76% drop compared to 2015.
The losses included $US7.7 billion (almost $A10 billion) of after tax impairments: $US4.9 billion ($A6.3 billion) against the value of onshore US assets; $US2.2 billion ($A2.8 billion) for the impact of the fatal Samarco dam failure; and $US570 million ($A740 million) for global taxation matters.