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’s New CEO
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.