The Board of BHP has announced that Mike Henry has been appointed Chief Executive Officer of BHP, following a thorough succession process.
Mr Henry will assume the role of CEO and Executive Director effective January 1, 2020, replacing Andrew Mackenzie, who will retire as CEO on December 31, 2019.
Mr Henry has 30 years’ experience in the global mining and petroleum industry, spanning operational, commercial, safety, technology and marketing roles. He was appointed to his current role of President Operations Minerals Australia in 2016, and has been a member of the Executive Leadership Team since 2011.
Mr Henry joined BHP in 2003, initially in business development and then in marketing and trading of a range of mineral and petroleum commodities based in The Hague, where he was also accountable for BHP’s ocean freight operations. He went on to hold various positions in the Company, including President Coal, President HSE, Marketing and Technology, and Chief Marketing Officer. Prior to joining BHP, Mr Henry worked in the resources industry in Canada, Japan and Australia.
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Outgoing CEO Andrew Mackenzie said it has been a privilege to serve as CEO of BHP.
“Our products are essential to global economic development and we deliver them in a way that creates significant value, for our shareholders, our employees, communities, nations and the world,” Mr Mackenzie said.
“BHP is in a good position. We have a simple portfolio, a strong balance sheet and options to grow value and returns for decades to come.
“Fresh leadership will deliver an acceleration in the enormous potential for value and returns that will come from BHP’s next wave of transformation. Choosing the right time to retire has not been an easy decision, however the Company is in a good position. I am confident Mike and BHP will seize the many opportunities that lie ahead.”
CEO-Elect Mike Henry said BHP will unlock even greater value from its ore bodies and petroleum basins by enabling our people with the capability, data and technology to innovate and improve.
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“We must operate safely, with discipline and reduce our impact on the environment. With the right people and the right culture we will deliver value and strong returns for shareholders and for all of society.”
The key components of Mr Henry’s remuneration are:
- A base salary of US$1,700,000 per annum;
- A pension contribution of 10 per cent of base salary;
- A Cash and Deferred Plan (CDP) target cash award opportunity of 80 per cent of base salary, with two tranches of deferred shares to be awarded, each to the equivalent value of the actual cash bonus received, vesting in two and five years respectively (the maximum CDP award is 1.5 times the target award); and
- A Long Term Incentive Plan (LTIP) award of 200 per cent face value of base salary (subject to shareholder approval).