UPDATE 2-Anglo American reports lower production ahead of annual meeting

jueves 21 de abril de 2016 05:54 GYT
 

* Q1 Kumba Iron Ore production down 27 pct

* De Beers diamond production cut by 10 pct (Adds comments, background, share price)

By Mamidipudi Soumithri and Clara Denina

LONDON, April 21 (Reuters) - Anglo American Plc reported lower first-quarter production across most of its mining businesses on Thursday ahead of its annual meeting, where shareholders have been urged reject CEO Mark Cutifani's pay.

Falling commodity prices have hit the company's production and its share price, prompting investor advisory groups such as ShareSoc and Institutional Shareholder Services to question Cutifani's pay package - 3.4 million pounds ($4.88 million) in 2015 - which they say is too high.

The criticism of Cutifani's salary illustrates increasing pressure on bosses over high pay. Last week, a big percentage of shareholders in BP voted against chief executive Bob Dudley's $20 million pay deal for 2015.

"Given what the stock has done over the past couple of years, it (Cutifani's salary) seems a bit high," Nik Stanojevic, equity analyst at Brewin Dolphin, said.

"More broadly, there is probably an issue of corporate governance where there is a case to say that pay is not always in line with investors' interests," he said, speaking about companies in general.

Anglo's shares were down 75 percent in 2015, their fifth straight annual loss. They have risen in the first quarter.   Continuación...