By Dylan Griffiths.
Anglo American Plc withdrew a resolution on executive incentives, the day before shareholders vote on its takeover of Teck Resources.
Anglo’s remuneration committee last month proposed that long-term incentive awards for 2024 and 2025 — tied to shareholder returns, cashflow, return on capital and environmental, social and governance measures — should also be linked to the Teck deal. Under the proposal, a minimum of 62.5% of the awards would have vested on completion of the takeover.
That resolution has been withdrawn after concerns raised by shareholders, Anglo said on Monday, adding that the deal isn’t conditional on approval of that resolution.
Investors of both Anglo and Teck are scheduled to vote on the combination — creating a $50 billion producer of copper, iron ore, and other metals across multiple continents — at special meetings in London and Vancouver set for Tuesday.
When Institutional Shareholder Services last month recommended that investors vote in favour of the deal, it added that it didn’t support the proposed changes to Anglo’s long-term incentive plan tied to the success of the transaction.
“Transaction-related remuneration is not considered good market practice in the UK,” the shareholder advisory firm said.