Changing of the guard at Rio Tinto

Yesterday's announcement of Sam Walsh's retirement on 1 July 2016 and Jean-Sebastien Jacques' appointment as Deputy CEO and Board member from 17 March 2016 and Group CEO from 2 July 2016 provided clear disclosure on the remuneration decisions for both. I take a look at these decisions in this note. (VIEW LINK) Perhaps the one decision I question is the granting of FY16 LTIP award to Mr Walsh on 11 March 2016, less than one week before yesterday's announcement. While pro-rated vesting will apply to the grant, the policy position still provides potential for a significant benefit when the LTIP vests in 4 and 5 years time.