Rio Tinto Announces Senior Management Changes
Rio Tinto recently terminated the contracts of Alan Davies and Debra Valentine.
Rio Tinto recently terminated the contracts of Alan Davies, Energy and Minerals chief executive, and Debra Valentine, legal and regulatory affairs group executive. The Rio Tinto board reviewed the findings to date of an internal investigation into 2011 contractual arrangements with a consultant who provided advisory services on the Simandou project in Guinea. The board’s decision does not prejudge the course of any external inquiries into this matter. However, the board concluded that the executives failed to maintain the standards expected of them under the company’s global code of conduct. In the circumstances, the board terminated the contracts of both executives.
In accordance with contract termination, neither executive will be eligible for any short-term incentive plan awards for 2016. Rio Tinto will also cancel all unvested incentive plan awards from previous years.
Rio Tinto contacted the regulatory authorities in the UK, Australia, and the U.S. about the matter and intends to fully cooperate with any subsequent inquiries.
Alan Davies will be replaced by Bold Baatar, who will join the executive committee as Energy and Minerals chief executive. Baatar has held a number of senior investment banking roles with JP Morgan before taking on chief executive positions with a gold mining company and a diversified investment management business in Mongolia. He joined Rio Tinto in 2013 as copper international operations president and is the managing director of marine and vice president iron ore sales and marketing.
“Appointing Baatar to run our Energy and Minerals business will add a fresh perspective to the product group,” said J-S Jacques, CEO. “Baatar brings broad international and executive experience in a wide range of commercial disciplines. He has a proven track record and will be a great addition to our executive committee, particularly with his strong strategic approach and acute understanding of Asia.”
Chris Lynch, chief financial officer, has temporarily assumed accountability for the corporate legal and regulatory affairs function. The company has reportedly begun the recruitment process for a new chief legal counsel.
For more information, visit www.riotinto.com.