City baulks at mining boss’s £8.5m payday as Musk gets $1tn in US

Core Viewpoint - The City has pressured Anglo American to withdraw an £8.5 million bonus plan for CEO Duncan Wanblad, reflecting shareholder concerns about executive compensation linked to merger performance [1][2][3]. Group 1: Company Actions - Anglo American has decided to scrap the proposed share bonus for its CEO after considering shareholders' concerns [2]. - The company faced opposition from Legal & General, which holds a 0.42% stake, stating the proposal breached their remuneration policies [3]. - Institutional Shareholder Services also advised shareholders to vote against the bonus proposal, citing poor practice in linking bonuses to deal completions [4]. Group 2: Industry Context - There is a growing divide between UK and US investor attitudes towards executive pay, with UK investors increasingly rejecting high compensation packages [3][6]. - The average pay for FTSE 100 CEOs rose by 15.9% to a record £5.91 million in the financial year 2024-25, indicating a shift in pay attitudes [5]. - In contrast, US investors have approved substantial pay packages, such as a $1 trillion bonus for Elon Musk contingent on ambitious performance targets [7][8].