Anglo American - AGM 30 April 2019
Item 14: Re-appoint the auditors
The auditor's tenure exceeds our tenure limit of 10 years. Deloitte LLP and its predecessor have served as the groupns external auditor since 1999. Information on when a tender of the audit contract was last undertaken is one of the recommendations of the UK Code; however, the Company has not provided this detail. The Company plans to put the auditor out to tender no later than after completion of the 2019 audit. The new external auditor will be appointed for the 2020 financial year onwards. More than 10% of shareholders opposed the reappointment of the auditor at the previous AGM. We recommend shareholders oppose.
Item 16: Approve the Remuneration Report
The structure of remuneration is considered unsatisfactory. Potential incentive pay exceeds guidelines. There were excessive benefits payments. The quantum for the year was excessive. Accordingly, we recommend that shareholders oppose this resolution.
Item 19: Authorise Share Buybacks
The size of the authority requested, 15% of share capital, exceeds best practice and ECGS guidelines. In addition, we regret that the company has adopted EPS as a performance metric accounting for a percentage of variable remuneration in excess of ECGS guidelines and the Company has not explicitly indicated whether its performance plans will be adjusted for the impact of the repurchase program. Accordingly, we recommend that shareholders oppose this resolution.
Anglo American is a global mining company with a portfolio of mining operations and undeveloped resources. Co. is focused on diamonds, copper, platinum group metals (PGMs), and bulk commodities and other minerals. Co.'s segments include: De Beers, which produces rough and polished diamonds; Copper, which produces copper; Platinum, which produces PGMs; Iron Ore and Manganese, which produces iron ore, manganese ore and alloys; Coal, which produces metallurgical coal and thermal coal; and Nickel, which produces nickel.
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