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The Shell chairman is facing calls to repay millions of pounds in bonuses he received when he was chief executive of a FTSE 100 mining giant.
Andrew Mackenzie was running BHP in 2015 when a dam burst in Brazil, killing 19 people.
The tragedy was the worst mining disaster in the South American country’s history and sparked international condemnation after also ruining people’s livelihoods and homes.
But in a revelation that will cause further anger among victims, it emerged that Mackenzie received $44.2 million (£34 million) in payments and bonuses from BHP after the incident.
Payments: Andrew Mackenzie, pictured at BHP in 2018, faces calls to repay money the company paid him following a mining disaster.
According to investigative journalism group Finance Uncovered, a breakdown of salary and bonuses shows Mackenzie earned $19 million between 2017 and 2020 when he was chief executive of BHP.
Some of the awards expired after he left the mining company and, as a result, he received another $25 million while at Shell.
The High Pay Centre, which campaigns against excessive board rewards, called on BHP to recover the money.
Luke Hildyard, chief executive, said: “Chief executives are well remunerated based on their perceived responsibility, so when major disasters occur during their tenure it is appropriate to review historical payouts.”
“Recovery provisions attached to CEO pay compensation have been criticized for their lack of effectiveness and it would help confidence in corporate governance and executive accountability to see more cases in which payments were returned to CEOs who were involved.” in scandals”.
A lawsuit by disaster victims began in London’s High Court last week. Lawyers representing thousands of victims are asking BHP for up to £36 billion in damages.
The court heard that BHP had been accused of “cynically and stubbornly attempting to avoid” responsibility for Brazil’s worst environmental disaster. It is the largest group lawsuit in English legal history. Separately, BHP and Vale signed a $23 billion deal with Brazilian authorities last week.
About 65 million cubic yards of toxic waste were released when the Fundao dam burst on November 5, 2015. The slide reached the small community of Bento Rodrigues within minutes, killing 19 people, including a child from seven years, destroying bridges, roads, homes, factories and other business premises, as well as farmland, wildlife and historic churches containing priceless artifacts.
The dam was managed by a Brazilian company called Samarco, in which BHP and Brazilian mining company Vale were joint shareholders. BHP and Vale signed a historic $23 billion compensation agreement with Brazilian authorities on Friday.
Mackenzie boasted that his management of the catastrophe “is recognized as a model for corporate crisis management.”
After leaving BHP, Mackenzie received a knighthood for services to business and UK-Australia relations.
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