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BHP Cuts CEO Andrew Mackenzie's 2019 Total Compensation

Anglo-Australian miner BHP Group Plc (BHP.AX,BLT.L,BBL,BHP) slashed total compensation of its chief executive officer Andrew Mackenzie by 24 percent in fiscal year 2019 following the death of a coalminer in Queensland last December.

The company said, in its 2019 annual report, that Mackenzie's actual total remuneration for 2019 decreased to US$3.531 million, from US$4.657 million in fiscal year 2018, due to a lower Short-Term Incentive Plan or STIP outcome. The Long-Term Incentive Plan or LTIP outcome was zero in both years.

According to the annual report, Andrew Mackenzie has not received a base salary increase since his appointment as CEO in 2013, and, after review in 2019, the Committee has again determined his salary will remain unchanged at US$1.700 million per annum. In addition, prior to the changes being proposed this year, the other components of his total target remuneration have also remain unchanged since 2013.

"while shareholders have benefited during FY2019 from positive share price growth and significant shareholder returns, the year was a challenging one operationally for BHP, and the remuneration outcomes for FY2019 for our senior executives reflect this," BHP said in the annual report.

The Remuneration Committee has assessed Mackenzie's performance for fiscal year 2019, and determined an STIP outcome of 48 per cent against the target of 100 per cent.

"This outcome took into account HSEC performance, which primarily reflected the tragic fatality that occurred at the Saraji coal mine in Queensland, Australia in December 2018. The Committee took advice from the Sustainability Committee, giving the Group's safety performance the greatest weighting in the HSEC category," remuneration committee chairwoman Carolyn Hewson said.

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