Investors welcomed Anglo American’s appointment of Mark Cutifani as its new chief executive as the FTSE 100 (FTSE: ^FTSE - news) miner poached him from the world’s third biggest gold company, AngloGold Ashanti (Other OTC: AULGF - news) .
Shares in Anglo American (LSE: AAL.L - news) rose by 27½ or 1.4pc in London trading to close up at £20.28 on the news that - as reported in the Sunday Telegraph - the mining veteran would replace outgoing chief Cynthia Carroll on April (Paris: FR0004037125 - news) 3.
He must now address problems at Anglo’s platinum operations in South Africa, which are saddled with high costs and labour strife, and at its over-budget Minas-Rio iron ore project in Brazil.
Before heading up AngloGold Ashanti, Mr Cutifani ran Vale’s global nickel business. Having worked as a mining engineer, he represents Anglo’s first-ever chief executive to boast hands-on mining experience.
Ms Carroll herself had represented the first outsider appointed, joining from the aluminium sector after a string of internal candidates.
However, analysts at Liberum Capital expected “some short term enthusiasm ... but [did] not [know] how much traction a turnaround story in Anglo American will gain, given how its hurt investors again and again”.
Mr Cutifani will recieve up to £2.4m in pay and bonuses each year, including a £1.2m base salary. Anglo said it had decided to pay his bonuses in shares rather than cash, to better align his interests with those of shareholders.