BHP, Woodside name new chief executives

Australian mining and energy giants have unveiled their new top bosses, with one of them set to pocket a base salary of newly $3m. BHP has tapped its American division president and former Pilbara iron ore boss Brandon Craig to run the mining giant. Mr Craig will take over from Mike Henry who was chief executive of BHP for more than 25 years. Meanwhile, former ExxonMobil and EnergyAustralia senior executive Liz Westcott becomes the new boss of Woodside. Shareholders reacted positively to the announcements, with BHP jumping 0.6 per cent to $50, while Woodside Energy rose 0.7 per cent to $31.77 shortly after the announcement. BHP announced on Wednesday Mr Craig would become chief executive and director from July 1 after a formal succession process. Mr Craig’s contract includes a $US1.9m base salary ($A2.67m) with a maximum performance incentive of 360 per cent and the company will pay for he and his family to move to Melbourne. Mr Craig previously ran the mining giant’s iron ore operations in Western Australia but most recently was BHP Americas president. “It is an honour and privilege to succeed Mike Henry as CEO of BHP,” Mr Craig said in a statement. “Thanks to his leadership, BHP is well positioned for the future.” A mining engineer by trade, Mr Craig has been at the world’s largest mining company since 1999. “As incoming CEO, I am committed to leading the talented and hardworking people who make BHP a great company and continuing to generate long-term value for all our shareholders,” Mr Craig said. “I will work tirelessly with the board and management to achieve this. I look forward to taking this great company forward.” Leading BHP’s Americas business, Mr Craig guided the miner to huge growth in copper and potash operations; copper now accounts for more than half of BHP’s earnings. Mr Henry said the company was well positioned going forward. “I am proud of what we achieved together. BHP is a safer and higher performing company and is better positioned for future growth,” he said. “We are creating sustainable long-term value for our shareholders, our supply chain, partners and our communities. Brandon is an excellent choice as CEO, I wish him every success in the role.” Ms Westcott, who had previously led Woodside’s Australian operations as executive vice president and chief operating officer, had been serving as interim chief executive since last December after Meg O’Neill joined oil giant BP. Woodside chair Richard Goyder congratulated Ms Westcott on her appointment, which followed a comprehensive recruitment process. “I am delighted with the appointment of Liz as Woodside’s next CEO and managing director,” Mr Goyder said in a statement. “Liz’s proven track record of outstanding strategic leadership and disciplined delivery distinguished her as the board’s top candidate for this role. “Liz’s extensive industry experience and strategic vision will be invaluable in leading Woodside at this significant moment in its history, as we position the company to meet growing global energy demand and deliver long-term shareholder value.” Ms Westcott said Woodside had “a proud track record of delivery for our customers and stakeholders”. “My focus as CEO is on sustainable value creation for Woodside shareholders, operational excellence and disciplined execution of our growth projects.” Her pay packet is $2.3m a year, with long term incentives which could triple her take-home cash and shareholdings. During Mr Henry’s six-and-a-half year tenure, BHP became the world’s largest copper producer. BHP is the second largest company on the Australian sharemarket, currently valued at $252.6bn, and shares have risen 25 per cent over the past 12 months. In the announcement to the ASX, the company points to Mr Henry’s stewardship leading to “sector leading operational performance” and “growing its lead as the world’s lowest cost major iron ore producer”. During his tenure, BHP “achieved a gender balanced workforce” and cut greenhouse gas emissions by 30 per cent. “BHP has become a simpler company, with a more resilient and growth-oriented portfolio through demerging its petroleum business, high grading its coal business, simplifying its listing structure and pivoting towards growth in copper and potash, both future facing commodities,” the statement reads.