Connect with us

Business

Rio Tinto executives say goodbye to 2020 with chunky payouts

Published

on

Rio Tinto executives say goodbye to 2020 with chunky payouts 1

MELBOURNE (Reuters) – Three Rio Tinto executives forced to leave the company after the destruction of sacred rock shelters at Juukan Gorge in Western Australia all closed off the year with substantial payouts, Rio’s annual report released on Monday showed.

Chief Executive Jean-Sébastien Jacques, who stepped down from his role at the end of 2020, received total remuneration of 13.3 million pounds ($18.6 million) under Australian accounting rules, up from 7.1 million pounds a year earlier.

Despite the loss of about 2.7 million pounds in awards following a board review into the blast, the sum, which includes the value of share awards that have not yet vested, was boosted by Rio Tinto’s strong share price performance.

Jacques and two other executives left Rio after the company determined their positions had become untenable after a backlash against a board review that originally imposed only financial penalties for the destruction of the sacred sites.

Rio Tinto’s remuneration committee, led by non-executive director Sam Laidlaw, granted “eligible” leaver status to the three executives, meaning they avoided stiffer financial penalties for the incident.

“In making the eligible leaver determination the Board fully recognised the gravity of the destruction at Juukan Gorge but was mindful that the three executives did not deliberately cause the events to happen, they did not do anything unlawful, nor did they engage in fraudulent or dishonest behaviour or wilfully neglect their duties,” it said in the annual report.

Rio’s iron ore head, Chris Salisbury, who stepped down in September, received total remuneration of A$6.7 million ($5.3 million) including termination benefits and unvested share awards, from A$2.9 million in 2019. Salisbury lost a A$1.1 million short-term incentive.

Head of Corporate Affairs Simone Niven forfeited 525,000 pounds in short-term incentives but received 5.1 million pounds, including 1.1 million pounds in termination benefits and unvested share awards.

Independent Rio Tinto Director Michael L’Estrange, who lead the initial board review, had a 46% increase in fees and salary. His total remuneration rose to A$227,000 from A$201,000.

Chairman Simon Thompson was paid 939,000 pounds, up from 934,000 pounds the year before.

($1 = 1.2695 Australian dollars)

($1 = 0.7136 pounds)

(Reporting by Melanie Burton; editing by Richard Pullin)

Business

Australia’s Macquarie raises guidance after U.S. winter freeze

Published

on

Australia's Macquarie raises guidance after U.S. winter freeze 2

By Paulina Duran and Jonathan Barrett

SYDNEY (Reuters) – Macquarie Group lifted its profit guidance on Monday, sending shares to 12-month highs, as its large North American energy business profits from the winter storms sweeping across Texas and other states.

Macquarie said it expects its fiscal 2021 profit to jump by as much as 10%, after warning just two weeks ago that earnings would be “slightly down”.

The energy business unit, designed to move large quantities of gas to meet unexpected demand, has single-handedly increased the overall profit forecast of the investment bank by about A$400 million, analysts said.

“Extreme winter weather conditions in North America have significantly increased short-term client demand for Macquarie’s capabilities in maintaining critical physical supply across the commodity complex,” the company said in a statement.

Macquarie is the second biggest gas marketer in North America, behind oil major BP. It purchases natural gas and moves it along pipelines and grids, typically from an area where usage is low to high-demand markets.

The deadly winter storm that crippled infrastructure and left millions of Texans without power meant electricity generators had to compete for natural gas supplies, pushing up prices sharply in the deregulated market.

The urgent supply situation has provided Macquarie with an unexpected windfall

“Macquarie appears to be capitalising well on volatility and financial market dislocation,” Bank of America Securities analysts said in a note, as it increased its earnings forecasts for the Sydney-headquartered company.

Macquarie’s performance hurt last year by the pandemic, with subdued deal-making and deteriorating economic conditions leading to a rise in impairment charges.

But a strong initial public offering of its majority-owned data analytics software business, Nuix, late last year and a fillip in the energy business have helped push its share price back to pre-pandemic levels.

The company, which also operates Australia’s largest asset manager and investment banking business, is set for extra boost from a rebound in local M&A activity this year.

Macquarie’s shares were 4.31% higher at A$148.39 early on Monday, the highest level in a year, outperforming a broader market that was flat. The share price eased slightly in afternoon trading.

Earlier this month, the Sydney-based financial conglomerate had forecast full-year earnings for the group to be “slightly” lower than in fiscal 2020.

Macquarie’s Commodities and Global Markets division contributes close to 40% of its group earnings. Analysts had previously raised concerns that the pandemic could erode profits from the division if high energy-use industries shuttered.

(Reporting by Paulina Duran and Jonathan Barrett; Additional reporting by Shriya Ramakrishnan; Editing by Peter Cooney, Jane Wardell & Shri Navaratnam)

Continue Reading

Business

Baidu-Geely EV venture names Mobike co-founder as chief

Published

on

Baidu-Geely EV venture names Mobike co-founder as chief 3

BEIJING/SHANGHAI (Reuters) – China’s Baidu Inc and automaker Geely hired Mobike co-founder and former chief technology officer Xia Yiping as chief executive of their new electric vehicle venture, the search engine giant said on Monday.

Baidu last month had announced it would set up a company with Zhejiang Geely Holding Group to leverage its intelligent driving capabilities and Geely’s car manufacturing expertise.

“Xia has extensive management experience in the field of smart cars and mobility services,” Baidu said in a statement. “We welcome Xia Yiping to join Baidu’s auto company and look forward to his contribution to Baidu and the automobile industry.”

Reuters reported Xia’s appointment last week, citing people familiar with the matter.

Xia served as Mobike’s chief technology officer until the company was acquired by food delivery giant Meituan in 2018. Prior to Mobike, he worked at Ford Motor and Fiat Chrysler.

(Reporting by Yingzhi Yang, Yilei Sun and Brenda Goh, Editing by Sherry Jacob-Phillips)

Continue Reading

Business

UK firms report strongest hiring intentions in a year – CIPD

Published

on

UK firms report strongest hiring intentions in a year - CIPD 4

LONDON (Reuters) – British businesses have the strongest hiring intentions in a year and fewer are planning to make redundancies as the economic outlook has brightened over the past three months, a human resources industry body said on Monday.

The Chartered Institute of Personnel and Development said 56% of businesses planned to increase staff numbers in the coming months, up from 53% in late 2020 but below the 66% planning to hire staff a year ago before the pandemic.

The proportion of firms planning redundancies dropped sharply to 20% from 30% in the last quarter.

However the CIPD said unemployment was likely to rise sharply if finance minister Rishi Sunak does not extend jobs support for businesses at his March 3 budget.

“It is far too soon to rule out further significant private sector redundancies later in the year if the government does not extend the furlough scheme to the end of June or if the economy suffers any additional unexpected shocks,” said Gerwyn Davies, a senior labour market advisor to the CIPD.

A costly furlough programme that is supporting around one in five private-sector employees during the current lockdown is due to end on April 30.

The British Chambers of Commerce warned last week that one in four of its members planned to make job cuts if the support ended while they were still feeling the impact of the pandemic.

The CIPD said hiring plans were strongest in healthcare, finance, education and IT, and weakest in the hospitality sector which is bearing the brunt of the current lockdown.

The survey, run jointly with recruiters Adecco, covered 2,000 employers between Jan. 5 and Jan. 30.

(Reporting by David Milliken; Editing by William Schomberg)

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Latest Articles

Rio Tinto executives say goodbye to 2020 with chunky payouts 5 Rio Tinto executives say goodbye to 2020 with chunky payouts 6
Business25 seconds ago

Rio Tinto executives say goodbye to 2020 with chunky payouts

MELBOURNE (Reuters) – Three Rio Tinto executives forced to leave the company after the destruction of sacred rock shelters at...

OPEC, U.S. oil firms expect subdued shale rebound even as crude prices rise 7 OPEC, U.S. oil firms expect subdued shale rebound even as crude prices rise 8
Top Stories1 hour ago

OPEC, U.S. oil firms expect subdued shale rebound even as crude prices rise

By Alex Lawler and Jennifer Hiller LONDON/HOUSTON (Reuters) – OPEC and U.S. oil companies see a limited rebound in shale...

Australia's Macquarie raises guidance after U.S. winter freeze 9 Australia's Macquarie raises guidance after U.S. winter freeze 10
Business2 hours ago

Australia’s Macquarie raises guidance after U.S. winter freeze

By Paulina Duran and Jonathan Barrett SYDNEY (Reuters) – Macquarie Group lifted its profit guidance on Monday, sending shares to...

Baidu-Geely EV venture names Mobike co-founder as chief 11 Baidu-Geely EV venture names Mobike co-founder as chief 12
Business2 hours ago

Baidu-Geely EV venture names Mobike co-founder as chief

BEIJING/SHANGHAI (Reuters) – China’s Baidu Inc and automaker Geely hired Mobike co-founder and former chief technology officer Xia Yiping as...

SoftBank Vision Fund set for new portfolio champion with Coupang IPO 13 SoftBank Vision Fund set for new portfolio champion with Coupang IPO 14
Banking3 hours ago

SoftBank Vision Fund set for new portfolio champion with Coupang IPO

By Sam Nussey and Joyce Lee TOKYO/SEOUL (Reuters) – SoftBank’s $100 billion Vision Fund is poised to have a new...

Five things to look out for in HSBC strategy update 15 Five things to look out for in HSBC strategy update 16
Banking3 hours ago

Five things to look out for in HSBC strategy update

By Alun John HONG KONG (Reuters) – HSBC Holdings PLC will update its “transformation” plan announced a year ago on...

Boeing recommends airlines suspend use of some 777s after United incident 17 Boeing recommends airlines suspend use of some 777s after United incident 18
Top Stories3 hours ago

Boeing recommends airlines suspend use of some 777s after United incident

By Jamie Freed and David Shepardson (Reuters) – Boeing Co said it recommended suspending the use of 777 jets with...

Shares turn cautious as bond yields, commodities surge 19 Shares turn cautious as bond yields, commodities surge 20
Trading3 hours ago

Shares turn cautious as bond yields, commodities surge

By Wayne Cole SYDNEY (Reuters) – Asian shares turned mixed on Monday as expectations for faster economic growth and inflation...

Oil gains as U.S. production slowly returns after freeze 21 Oil gains as U.S. production slowly returns after freeze 22
Top Stories3 hours ago

Oil gains as U.S. production slowly returns after freeze

TOKYO (Reuters) – Oil prices rose on Monday as the slow return of U.S. crude output that was cut by...

Global dividend payouts forecast to revive in 2021 23 Global dividend payouts forecast to revive in 2021 24
Finance3 hours ago

Global dividend payouts forecast to revive in 2021

By Joice Alves LONDON (Reuters) – Global dividend payments could rebound by as much as 5% this year, a new...

Newsletters with Secrets & Analysis. Subscribe Now