Weeks before Andrew Mackenzie takes over as ceo of global miner BHP Billiton, the company has announced a reshuffle of executives that removes a layer of management under the new boss.
Heads of five divisions – copper, petroleum and potash, coal, aluminium, manganese and nickel, iron ore – will be part of the group management committee (GMC) and report directly to the ceo.
Previously, three executives – Mike Yeager, head of petroleum, Albert Calderon, ceo of aluminium and nickel, and Marcus Randolph, head of ferrous and coal – reported to the ceo. They have all left their roles.
Mike Yeager will retire from the company on July 1, 2013. Tim Cutt will take over as the president for the company’s potash and petroleum divisions.
Albert Calderon will move out of his role as chief executive, aluminium, nickel and corporate development but will remain as advisor to the ceo.
Daniel Malchuk, currently president minerals exploration, will assume responsibility of assets under aluminium, manganese and nickel businesses.
Marius Randolph, who was the chief executive of ferrous and coal, will leave the GMC on May 10, 2013.
Dean Dalla Valle, president of energy coal, will take charge of whole of BHP’s coal assets with the consolidation of metallurgical and energy coal businesses.
Peter Beaven, currently president of base metals division, will assume charge as president of the copper business, a role which will include all his current responsibilities for the assets under the former base metals business.
Jimmy Wilson will keep charge of iron ore division.
“[...] The removal of a layer of management brings the operations closer to the ceo and ensures alignment between strategic and managerial leadership,” Mackenzie said.
The new management will continue to focus on capital discipline, the incoming ceo pointed.
BHP also announced the new ceo’s compensation on Thursday April 18.
He will draw a base salary of $1,700,000 per annum, lower than outgoing ceo Marius Kloppers' base salary.
“We believe that some downward rebasing at this time is appropriate; a view that is supported by Andrew,” chairman Jac Nasser said.
Global miners have seen a series of senior management change, especially at the top office, in recent months.
BHP posted a slump in 2012 half-yearly profits blaming lower commodity prices and inflation among other factors.
Weeks before Andrew Mackenzie takes over as ceo of global miner BHP Billiton, the company has announced a major senior management reshuffle that brings operations closer to the top office.