Glencore proposes to change CEO pay terms after any takeover deal - FT
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Glencore (GLCNF) (GLNCY) has proposed to change CEO Gary Nagle's pay package to allow him to cash out long-term share awards more quickly if the company is taken over, the Financial Times reported Monday.
As part of the negotiations, Glencore (GLCNF) (GLNCY) reportedly has proposed altering a change-of-control provision that could keep Nagle's shares unvested, even if he leaves the company following a takeover; Nagle's shares would vest if the company is bought by a rival and he is replaced as CEO, although some awards - which comprise most of the CEO's remuneration - would still not be able to be sold for a number of years.
Nagle was paid ~$2M in basic salary this year, with the remainder of his total pay of $7.5M coming from the vesting of long-term incentives.
The report may revive speculation about a deal for the company, given talks earlier this year between Glencore (GLCNF) (GLNCY) and Rio Tinto (RIO) over a $260B mega-merger, which collapsed over differences on valuation as well as the management of the combined group.
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