The BHP Group Ltd (ASX: BHP) share price is up after the mining giant revealed its latest board appointment.
BHP is a major miner in the global commodity landscape, with iron ore and copper being two of its main focuses.
BHP’s newest board appointment
The mining giant has appointed Ross McEwan as a non-executive director, starting 3 April 2024.
BHP pointed out he has significant executive experience, including in the financial services industry, with expertise in capital allocation, risk management and a complex regulatory environment.
McEwan’s current role is the CEO of National Australia Bank Ltd (ASX: NAB), where he has been the cost for five years. Prior to that, he was CEO of the Royal Bank of Scotland for six years to 2019.
Leadership comments
The BHP Chair Ken MacKenzie said:
We are delighted to announce that Ross McEwan will join BHP.
Ross brings a strong focus on people and culture, technology and innovation and has deep experience in capital allocation and value creation.Ross has worked closely with a wide range of stakeholders, including customers, governments and regulators and brings a global perspective. He has a deep understanding of organisational transformation and brings a very strong focus on the customer and technology as a driver of change. We look forward to welcoming Ross to the Board on 3 April 2024.
My thoughts on the appointment and the BHP share price
In my opinion, McEwan has been one of the best leaders in the ASX world over the past five years. NAB seems to have improved on the basics, enabling it to deliver good banking performance.
While this is a non-executive role – meaning he’s not involved in any part of running BHP’s operations – I think it’s a great move by BHP to bring him onto the board for his experience, knowledge and leadership capabilities.
I think BHP’s overall leadership structure is improved by having him part of the team.
But, being on the board doesn’t mean the company’s financial performance will improve in the short-term. The company is highly reliant on what commodity prices do for its profitability in the next few months.
For now, I’d be willing to wait for a lower iron ore price to invest in BHP shares.
