LONDON (Reuters) - Xstrata’s XTA.L finance director has become the first top management casualty since the miner’s shareholders sealed its merger with Glencore, announcing he had decided against taking up the same role in the merged group.
Trevor Reid, one of the handful of executives who set up Xstrata a decade ago, had been due to stay on as chief financial officer in trading-to-mining giant Glencore Xstrata.
But his position has been in doubt since Mick Davis, Xstrata’s long-serving chief executive, was replaced at the helm of the newly created Glencore-Xstrata by Glencore’s boss and top shareholder, Ivan Glasenberg, as part of a deal that improved the terms of the takeover in September.
Reid’s decision, announced by Xstrata on Tuesday, will raise fresh concerns over executive departures from the miner following its merger with Glencore (GLEN.L), after minority investors voted down a controversial retention plan.
A former banker, Reid was brought in by Davis at Xstrata’s inception in 2001 and the two started in a JP Morgan basement a business they had sketched out in the back of a taxi. The two, with a tight-knit team of executives, built the company from a $500 million ferrochrome and zinc business into a global, diversified miner with a market value of some $50 billion.
“Eleven years ago, I persuaded Trevor to leave a successful banking career to embark upon the transformation of a struggling company in a precarious financial position with limited options,” Davis said.
“Xstrata’s evolution into one of the world’s leading mining companies has exceeded even our initial ambitions and is a testament to Trevor’s skills and contribution as an executive director and CFO.”
Shareholders in Xstrata voted through its $31 billion takeover by trader Glencore last month but twice snubbed a controversial pay plan to retain key managers.
Xstrata said Reid would be a consultant to the combined group for up to six months following completion of the merger.
Reporting by Clara Ferreira-Marques; Editing by Paul Sandle