Bruce Duguid, Director, Hermes EOS, said: We welcome Anglo American’s support to enhanced disclosure of the risks to its business from climate change. Following its reorganisation, the company will remain a highly energy intensive metals and mining company. Increasing energy efficiency is vital to protecting long term shareholder value and we believe it is appropriate that the company publishes its energy efficiency targets over the short, medium and long term.
However, we have not supported the remuneration report this year as we are concerned by the unusually high number of shares issued to directors under its long term incentive plan. This is roughly triple the number of prior years, as it is calculated by dividing the salary of each director by the prevailing share price, which was particularly low at the time of the award following a sharp fall over the year. In the light of the value creation experienced by long term owners in recent years, we are concerned about the resulting potential future reward to directors.