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Rio Tinto names Stausholm as CEO in surprise pick after cave destruction www.reuters.com
(Reuters) -Rio Tinto named Chief Financial Officer Jakob Stausholm as its next chief executive on Thursday, defying expectations it would pick an external candidate to repair its image after its destruction of sacred Aboriginal rock shelters.
The destruction of the 46,000-year-old Juukan Gorge rock shelters, while legal, sparked public and investor uproar that ultimately led to the resignation of incumbent Jean-Sebastien Jacques and two deputies.
Stausholm, who joined Rio as CFO in 2018, is now tasked with the tough job of repairing strained relationships with investors and the Aboriginal community while reforming the mining company to improve oversight.
Rio’s choice of an internal candidate was a surprise as most bankers and investors had expecting the company to choose an outsider to start with a clean slate.
“This decision appears to be further evidence of poor corporate governance and suggests a lack of any credible succession planning,” said Doug McMurdo, chairman of Britain’s Local Authority Pension Fund Forum which represents 82 members with 300 billion pounds ($408 billion) under management.
“It further raises questions about Rio Tinto’s corporate culture over the last few years,” he said, adding that it also showed there had been a lack of consultation by Rio Chairman Simon Thompson with investors.
The board’s handling of the aftermath of the cave blasts has cast a shadow over Thomson’s tenure.
Analysts at Morgan Stanley said Stausholm’s appointment could indicate little change in the overall strategy but that it should minimize the typical disruption period caused by management transitions.
Shares in London, which are at record highs on booming iron ore prices, had climbed 1.8% by 1135 GMT.
Published Date:2020-12-18
