Rio Tinto’s board has proposed a 56% increase in CEO Simon Trott’s target remuneration package. The package would total £9.8 million ($13.06 million), subject to shareholder approval.
The proposal would raise the maximum long-term incentive from 500% to 900% of Trott’s base salary. Rio Tinto said the changes aim to attract and retain strong leaders amid competition for executive talent from the energy, aerospace and defense sectors.
The company has expanded its peer benchmarking group to include energy majors Chevron and ExxonMobil. Some investors have reportedly raised concerns that the move could fuel salary inflation and create poor optics during a cost-of-living crisis.
Shareholders will vote on the proposal at the next annual meeting.