LONDON Xstrata Plc chairman Sir John Bond will step down from his role after shareholders approved the proposed merger of Xstrata and Glencore International Plc but rejected a £144-million ($229-million) incentive plan to retain key Xstrata staff.
The retention plan, which Bond sanctioned, was initially a precondition of the merger, but it met shareholder disapproval when it was unveiled.
Bond will step down when a replacement has been appointed.
Bond said in a statement on Nov. 20 that the retention scheme was in the best interests of shareholders.
"In the light of shareholders decision not to support the boards recommendation, I have informed the Xstrata board and Glencores current chairman that, once the merger has completed, I intend to instruct the board to commence an orderly process to appoint a new independent chairman of Glencore Xstrata Plc," he said.
"Upon the satisfactory conclusion of the search process, overseen by the Glencore Xstrata Plc board nominations committee, I will step down," he added.
Nearly two-thirds of shareholders, holding 78.88 percent of all Xstrata stock not held by Glencore, voted in favor of the merger without the incentive agreements.
The resolution to approve the merger without the incentives was then ratified during an extraordinary general meeting held in Zug, Switzerland, where Xstrata is headquartered. Glencore is based in nearby Baar, Switzerland.
A version of this article was first published by AMM sister publication Metal Bulletin.