BHP (ASX:BHP) Picks New CEO, How Will The Share Price Respond?

Companies and indices mentioned:

Resources giant BHP (ASX: BHP) has chosen who its new CEO will be, how will the share price respond?

BHP is a world-leading resources company, extracting and processing minerals (like iron ore and copper), oil and gas, and has more than 62,000 employees and contractors, primarily in Australia and the Americas. Headquartered in Melbourne, BHP has shares listed on both the ASX and London Stock Exchange (BHP Billiton Plc).


BHP has chosen Mike Henry to become the company’s new Chief Executive Officer effective from 1 January 2020, replacing Andrew Mackenzie who will return as CEO from 31 December 2019. Mr Henry will also be Executive Director.

Mr Henry has 30 years experience of the global mining and petroleum industry where he has worked in operational, commercial, safety, technology and marketing roles.

In 2016 he was appointed as the President Operations Minerals Australia and has been a member of the Executive Leadership Team since 2011.

He has been in the BHP business since 2003 where he started in the business development side of things and then moved to marketing & trading in a range of commodities. He has been BHP’s President Coal, President HSE, Marketing and Technology and Chief Marketing Officer.

Before BHP he worked in Canada, Japan and Australia.

He’ll earn a base salary of US$1.7 million, a pension contribution of 10% of base salary as well as other incentives.

BHP Chairman Ken MacKenzie said: “Mike Henry’s deep operational and commercial experience, developed in a global career spanning the Americas, Europe, Asia and Australia, is the perfect mix for our next CEO.

I am confident his discipline and focus will deliver a culture of high performance and returns for BHP.”

But the announcement wasn’t just about announcing the new CEO, it also paid homage to the performance of the outgoing Andrew MacKenzie. Chairman Ken MacKenzie said of the CEO:

Under his leadership, BHP has transformed into a simpler and more productive company, financially strong and sharply focused on value for shareholders. We thank him for his vision and hard work, which has changed the way we operate and engage with the world.”

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.

3 stocks to own in July 2020...

Amidst the COVID-19 confusion, there are some companies still growing FAST (think: online meetings through Zoom, streaming companies like Netflix and eHealth services provided by Teledoc).

While the world grapples with COVID-19, some companies are still growing rapidly. The entire cloud computing market is valued around $US210 billion but if you ask me, it seems clear as day that this market is only going to get bigger in 2020 and beyond.

That's why our top investment analyst has just identified 3 growth stocks in a net cash position, with strong competitive forces... and obvious tailwinds at their back. He owns all three of them right now!

Claim a FREE investing report on our analyst's "3 best share ideas for the cloud revolution" when you create a free Rask Australia account.

Our report is 100% free and unlocks hundreds of hours of bonus content.

Simply click here to access the report.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.