Rio Tinto proposes 56% pay increase for CEO Simon Trott

Rio Tinto’s board has proposed increasing CEO Simon Trott’s target remuneration package by 56%, bringing it to £9.8 million ($13.06 million). The proposal comes as the mining sector faces intense competition for executive talent from the defense, aerospace, and energy transition industries.

To remain competitive, Rio Tinto has expanded its peer benchmarking group to include companies such as Chevron, ExxonMobil, and GE Aerospace. Ben Wyatt, chair of Rio Tinto’s remuneration committee, stated that while Trott’s fixed pay remains unchanged, the adjustments to incentives tied to multi-year business outcomes and shareholder returns are intended to “attract and retain strong leadership in a competitive global market.”

Under the proposed plan, Trott’s maximum remuneration could rise by 63% to £18.3 million. This includes increasing short-term incentives to a maximum of 300% of his base salary and long-term targets to 900%. The package, which would apply to the next three years, is subject to shareholder approval at the next annual general meeting.