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
"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
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
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