The Daily Telegraph

BHP Billiton picks youngest director as new chairman

- By Jon Yeomans

MINING group BHP Billiton has picked Ken Mackenzie, its youngest director, to be chairman as it looks to quell investor discontent and reaffirm its strategy.

Mr Mackenzie, 53, will take up the role in September, when former Ford boss Jac Nasser steps down.

Canadian by birth, Mr Mackenzie spent 23 years at Australian packaging company Amcor, the last 10 of those as chief executive. He stepped down in 2015, having been credited with cutting costs, expanding overseas revenues and doubling the firm’s market value to more than $12bn (£9.3bn).

Mr Mackenzie joined the BHP board in September 2016 and is seven years younger than its chief executive Andrew Mackenzie. They are not related.

Shriti Vadera, the senior independen­t director who led the recruitmen­t process, said Mr Mackenzie “brings extensive global executive experience” with “a proven track record of delivering value for shareholde­rs”.

The new chairman will attempt to reassure shareholde­rs that BHP’S decision to focus on offshore oil projects and copper mines is the right approach, in the wake of a highly vocal campaign from activist investor Elliott.

The hedge fund has argued that BHP has underperfo­rmed in recent years and needs to step up returns to shareholde­rs. It has been particular­ly critical of botched US shale acquisitio­ns in 2011 that cost the company billions of dollars, and has demanded that BHP remove the directors on the board who signed off on the deals.

Elliott welcomed Mr Mackenzie’s appointmen­t, describing it as “a constructi­ve step in bringing much-needed change to the direction of BHP”.

BHP, which recently launched a rebranding campaign to drop the “Billiton” from its name, said it looked at both internal and external candidates to replace Mr Nasser, who has been chairman for seven years and joined the board in 2006.

The outgoing chairman postponed his departure for a year to help the company regroup after the devastatin­g Samarco tragedy in Brazil in November 2015, when a dam collapsed and the resulting flood killed 19 people.

BHP shares closed down 2p at £11.58 yesterday.

 ??  ?? Ken Mackenzie, 53, has been named as the new chairman of BHP Billiton, and will take over from Jac Nasser in September
Ken Mackenzie, 53, has been named as the new chairman of BHP Billiton, and will take over from Jac Nasser in September

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