Investors cheer as Anglo American bags rival's CEO Mark Cutifani

RELATED QUOTES

SymbolPriceChange
AAL.L1,214.00-31.00
^FTSE6,954.21+22.66
AULGF12.010.00
APR.PA12.00-0.10

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.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.2575+0.0004+0.03%
    GBPUSD=X
    1.1904+0.0058+0.49%
    GBPEUR=X
    144.9700+1.58+1.10%
    GBPJPY=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    50.46-0.01-0.02%
    BZF17.NYM
    1,158.40-11.40-0.97%
    GCZ16.CMX
    16.82-0.20-1.20%
    SIZ16.CMX
    2.64+0.03+0.95%
    HGZ16.CMX

TOP TRADING PROVIDER

  • Trade now

    Trade now

    Create account for free with the No.1 spread betting and CFD provider. Losses can exceed deposits. More »