Revealed: Mining Boss Set New Bonus Target
The mining group Xstrata is targeting a 60% increase in cost savings from its merger with rival Glencore in an attempt to push through the companies' £60bn merger.
I can reveal that the revised terms of a controversial bonus package for senior Xstrata executives centre on the combined group increasing cost and revenue synergies from the deal from $500m to in the region of $800m.
The new proposal was tabled by Xstrata yesterday and the details are likely to be confirmed today in a stock exchange announcement.
The revamped deal is designed to assuage the concerns of angry City shareholders who have threatened to try to vote down the merger in protest at the mammoth executive bonus pot.
As I understand it, Mick Davis, Xstrata's chief executive, and a handful of colleagues on the company's executive committee will have to deliver a significant multiple of the originally-envisaged $70m of cost savings in order to achieve their maximum bonuses.
As I revealed last night, the bonuses will be paid in shares rather than cash.
I'll have more detail on this breaking news later.
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