LONDON: The world's second biggest miner Rio Tinto has deferred for at least two years a decision on former chief executive Sam Walsh's performance-related pay, after a scandal over $10.5 million in payments to a consultant in Guinea.
The scandal erupted in November after Rio Tinto become aware of emails from 2011 that referred to the payments in connection with the vast Simandou iron ore project. Investigations are ongoing.
Walsh, who took retirement in 2016, was named in the emails sent by senior executive Alan Davies. Davies was sacked in November and is taking legal action.
In its annual report published on Thursday, Rio Tinto said its board decided it would be inappropriate to decide on Walsh's "outstanding remuneration" for now.
It said it had therefore reached agreement with Walsh to defer payment of long and short term incentive plans for "a minimum of two years".
The base salary of Chief Executive Officer Jean-Sebastien Jacques, who took over from July 2016, was held at around 1 million pounds ($1.2 million) plus a performance-related bonus of 1.5 million pounds, half of which was paid immediately and the other half deferred for three years.
The report also said Jacques would not receive the expatriate benefits provided to his predecessor.
Walsh's base salary was nearly 2 million Australian dollars ($1.5 million) when he retired.
As shareholders press for a more moderate approach to executive pay, another miner Anglo American has said its annual report to be published later this month will put forward a cap on long-term incentive plans, which shareholders will vote on in April.
Last year, shareholders said Anglo American CEO Mark Cutifani's remuneration was too generous after a share price collapse linked to the commodity downturn. All the big miners have since recovered.
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