SINGAPORE Freeport-McMoRan Copper & Gold Inc. chief executive officer Richard C. Adkerson gave up his right for severance pay as he canceled his employment agreement and received a retention award of shares valued at $36 million.
He will continue in his current role as president, chief executive and vice chairman, the Phoenix-based miner said Dec. 23.
"FCX and Adkerson have mutually agreed to terminate his employment agreement, including Adkersons rights to any specified salary, bonus or other compensation amounts, rights to severance or change-of-control payments and other rights under his employment agreement," the company said.
As a result, Adkerson was awarded a special retention bonus of restricted stock units representing 1 million company shares worth about $36 million based on a $35.69-per-share closing price on the New York Stock Exchange Dec. 20.
Adkerson was eligible for $113 million in case of termination with good reason or no cause, or $124 million in the case of change-of-control termination, according to Freeports last proxy filing with the U.S. Securities and Exchange Commission.
His base pay in 2012 was $2.5 million, but his total direct compensation including base pay, bonus, stocks, options and incentives was $17.3 million.
Separately, Lydia H. Kennard and Frances Fragos Townsend have been appointed to the companys board of directors.
Kennard is president and chief executive officer of KDG Construction Consulting, Glendale, Calif., and Fragos Townsend currently serves as executive vice president of worldwide government, legal and business affairs at New York-based MacAndrews & Forbes Holdings Inc. and as a director of Scientific Games Corp., SIGA Technologies Inc., New York, and Western Union Co., Englewood, Colo.
A version of this article was first published in AMM sister publication Metal Bulletin.