Anglo scraps exec bonus vote as Teck merger looms

Anglo American (LSE: AAL) has dropped a proposal to change executive bonus awards from the agenda of tomorrow’s shareholder vote on its merger with Canada’s Teck Resources (TSX:TECK.A | TECK.B) after investors objected to the plan.

The merger now hinges only on approving the issue of new shares, not on executive pay changes, Anglo American said. It added that its remuneration committee will consult investors ahead of an updated pay policy at the 2026 annual meeting. 

The withdrawn proposal had sought a 62.5% minimum vesting of 2024 and 2025 share awards for executive directors, tied to completion of the Teck merger, and required a separate resolution because it fell outside the current remuneration policy.

Proxy advisor Institutional Shareholder Services recommended voting against the amendment, saying transaction-linked pay is not considered good market practice in the UK. ISS said awarding such a large portion of bonuses based on a single metric weakens the broader performance criteria used to assess management.

Anglo American noted the incentive plan was meant to support the deal and help retain senior leaders as the merger would shift the company’s headquarters to Canada.

“With the removal of this resolution, we suspect the Teck combination proposal will be strongly backed by Anglo shareholders,” analysts at Peel Hunt wrote.

Decade’s top deal

The proposed $53-billion transaction would create a major copper producer but still needs regulatory approval. 

The merger vote comes after BHP (ASX:BHP) briefly attempted to buy Anglo last month before abandoning its offer three days later. 

Anglo has long been seen as a takeover target thanks to its copper portfolio, though its diamonds and platinum businesses have complicated past bids. 

Shareholders of Anglo and Teck are to vote on the deal Dec. 9. If approved, the combined miner would rank among the world’s top five copper producers with annual output of 1.35 million tonnes, topping Chile’s Escondida mine’s 2024 production of 1.28 million tonnes.

It would be the largest mining deal of the decade.

Shares in Anglo American were about flat at £29.77 in London on Monday, valuing the company at £35.1 billion. Teck class B shares fell about 1% by midday to C$61.75 each in Toronto for a market capitalization of C$30.1 billion.