Our views

Opaque Glencore must do more


Ashley Hamilton Claxton, Corporate Governance Manager

24 May 2017

The anomalous structure of Glencore’s board renders the company’s remuneration policy materially irrelevant, as it only applies to one executive director, the company’s CEO Ivan Glasenberg, a significant shareholder in his own right who does not participate in any bonus or long-term incentive schemes.
Glencore’s Finance Director attends most of the firm’s board meetings but is not a formal member of the board and therefore his remuneration is not disclosed. As there is no disclosure of what any other senior executives are paid, the overall performance and reward structure of the most senior executives at Glencore is largely opaque.
For these reasons, we voted against both the remuneration report and policy, as well as against the reappointment of the chairman of the remuneration committee. We would like the company to address these long-standing concerns with the structure of the board and to improve board diversity, so we have also elected to vote against the re-election of Glencore’s Chairman.

The anomalous structure of Glencore’s board renders the company’s remuneration policy materially irrelevant, as it only applies to one executive director, the company’s CEO Ivan Glasenberg, a significant shareholder in his own right who does not participate in any bonus or long-term incentive schemes.

Glencore’s Finance Director attends most of the firm’s board meetings but is not a formal member of the board and therefore his remuneration is not disclosed. As there is no disclosure of what any other senior executives are paid, the overall performance and reward structure of the most senior executives at Glencore is largely opaque.

For these reasons, we voted against both the remuneration report and policy, as well as against the reappointment of the chairman of the remuneration committee. We would like the company to address these long-standing concerns with the structure of the board and to improve board diversity, so we have also elected to vote against the re-election of Glencore’s Chairman.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.