BHP Billiton settles with ex-CEO

Not bad for half a year’s work: after serving only six months as CEO of BHP Billiton (BHP-N) before quitting, Brian Gilbertson has been awarded a 4.1-million (US$6.7-million) exit settlement.

Gilbertson left BHP Billiton in early January, two and a half years earlier than the date specified in his employment contracts.

He worked for BHP Billiton, Billiton and its predecessor companies for 32 years and was widely seen as the architect behind the 2001 merger of BHP and Billiton, which created the world’s largest mining company.

BHP will also be providing Gilbertson with the following benefits, which could eventually eclipse the value of the original settlement:

— 602,575 (US$985,000) per year in pension benefits for the rest of his life;

— the retention of rights to a maximum of 228,685 BHP Billiton shares (worth US$2.6 million at presstime) out of the total rights for 760,110 held at the time of resignation;

— 150,000 (US$245,000) for moving expenses following his departure;

— medical insurance for him and his wife until mid-2005;

“We have resolved this matter on the terms specified in our contract with Mr. Gilbertson,” says BHP Billiton Chairman Donald Argus. “The decision on the separation payments has the unanimous support of the board.”

In May, Gilbertson was retained by Lonmin to serve as a consultant. The company is considering moving beyond its South African platinum-group-metals production and transforming into an international diversified mining company.

Within a few days of his appointment, Lonmin was swept up in the proposed takeover by AngloGold of Lonmin’s 28%-owned affiliate, Ashanti Goldfields.