Anglo American investors protest at chief executive's pay package
Mining giant Anglo American has faced investor protest after a significant number of shareholders voted against chief executive Mark Cutifani's £3.4 million pay package for 2015.
The r esults from shareholders who voted before the firm's annual general meeting (AGM) revealed that 41.64% opposed its remuneration report, while 58.36% were in favour.
The full result of the vote has yet to be announced.
Chairman Sir John Parker said the FTSE 100 firm would take a "fresh look" at its pay policy over the next year and put it to a vote at the 2017 AGM.
He said: "We are, of course, well aware of the strength of feeling among some investors about the levels of executive remuneration in many large companies and the mechanisms that determine them.
"As you know, we undertook extensive revisions to our remuneration policy in 2013 following consultations by the chair of our remuneration committee, Sir Philip Hampton, with our major shareholders, and that policy was overwhelmingly approved at our AGM in 2014. It is that policy that we are working to today.
He added: "In the case of the remuneration outcomes for 2015 - without doubt a very tough year for us and for our shareholders - I would point out that our existing policy did result in the chief executive's variable pay being just one-fifth of the maximum achievable. In addition, his salary was frozen, as it was for all senior management."
Legal and General Investment Management, which owns 2.9% of Anglo American, said it was voting against the remuneration report.
It said it had taken the decision because of a "lack of discretion exercised by the remuneration committee to scale back long term incentive awards (LTIP) to executive directors at a low share price.
It added: " These grants are made as a multiple of salary and have the effect of awarding a higher number of shares which could lead to windfall gains in the future. This is not in line with best practice and is stated in our voting policy."
The backlash comes after shareholders in oil giant BP voted to reject its remuneration report for the last year, which included a pay deal of 19.6 million dollars (£13.8 million) for chief executive Bob Dudley.
Anglo American revealed in February that it had plunged deeper into the red as it bore the brunt of tumbling commodity prices.
It said it continued to face ''strong headwinds'' as it slumped to a full-year pre-tax loss of 5.5 billion US dollars (£3.8 billion), compared with a 259 million US dollar (£179.7 million) loss in 2014.
Group revenues also sank by more than a quarter year-on-year to 23 billion US dollars (£15.9 billion), as its basket price for products fell 24%.
Shares in Anglo American were down more than 5% at market close.