Shell chairman faces calls to repay £34m paid by BHP after dam disaster
The chairman of Shell is facing calls to hand back millions of pounds in bonuses he received while chief executive of a FTSE 100 mining giant.
Andrew Mackenzie led BHP in 2015 when a dam burst in Brazil, killing 19 people.
The tragedy was the worst mining disaster in the South American country’s history and sparked international condemnation after people’s livelihoods and homes were also destroyed.
But in a revelation set to spark further anger among victims, it has emerged that Mackenzie received $44.2 million (£34 million) in pay and bonuses from BHP following the incident.
Payments: Andrew Mackenzie, pictured at BHP in 2018, faces calls to return money paid to him by the company after a mining disaster
According to investigative journalism group Finance Uncovered, a breakdown of salaries and bonuses shows Mackenzie earned $19 million between 2017 and 2020 when he was CEO at BHP.
Some of the awards expired after he left the mining company and as a result he received another $25 million while at Shell.
The High Pay Centre, which campaigns against excessive boardroom pay, called on BHP to claw back the money.
Luke Hildyard, executive director, said: ‘Chief executives are paid well based on their perceived responsibility, so when major disasters occur under their watch it is appropriate to review historical payments.
‘Clawback provisions tied to executive pay have been criticized for their lack of effectiveness and it would increase confidence in corporate governance and executive accountability if there were more cases of returns to CEOs involved in scandals .’
A trial against victims of the disaster began last week at London’s High Court. Lawyers representing thousands of victims are seeking up to £36 billion in damages from BHP.
The court heard BHP was accused of ‘cynically and persistently trying’ to avoid responsibility for Brazil’s worst environmental disaster. It is the largest class action lawsuit in English legal history. Separately, BHP and Vale last week signed a $23 billion settlement with authorities in Brazil.
About 65 million cubic meters of toxic waste was released when the Fundao Dam was breached on November 5, 2015. The skid reached the small community of Bento Rodrigues within minutes, killing 19 people, including a seven-year-old, and destroying bridges, roads and bridges. houses, factories and other commercial buildings, as well as farmland, wildlife and historic churches with valuable artefacts.
The dam was operated by a Brazilian company called Samarco, in which BHP and Brazilian miner Vale were co-shareholders. BHP and Vale signed a historic $23 billion compensation deal with Brazilian authorities on Friday.
Mackenzie boasted that his handling of the disaster “is recognized as a model for corporate crisis management.”
After leaving BHP, Mackenzie was awarded a knighthood for his services to business and Britain-Australia relations.
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