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Rio Tinto (ASX, LON: RIO) is seeking shareholder support for a 56% increase in chief executive Simon Trott’s target compensation to £9.8 million ($13.06 million) next year as competition for senior executives intensifies across the mining industry.
The miner proposes raising long-term incentives to nine times Trott’s base salary from five times currently, potentially lifting his maximum annual compensation above £18 million ($24 million) if he meets the highest performance targets.
“This is designed to drive business performance in the interests of shareholders, support the delivery of Rio Tinto’s long-term strategy, and attract and retain strong leadership in a competitive global market,” remuneration committee chair Ben Wyatt told Reuters.
The proposal reflects a broader shift in executive recruitment as mining companies compete with other industries for leaders capable of improving operational performance, controlling costs and navigating increasingly complex global businesses.
Broader pay benchmarks
Rio Tinto has expanded the group of companies it uses to benchmark executive compensation beyond mining to include oil and gas, engineering and manufacturing businesses such as BP (LON, NYSE: BP), Shell (LON, NYSE: SHEL), Caterpillar (NYSE: CAT) and Rolls-Royce (LON: RR).
The proposed target package exceeds those of mining peers but remains below the median of the broader comparison group. Trott’s maximum potential compensation would sit just below the median of the 19 companies Rio considers peers.
Wyatt said Trott’s fixed salary would remain unchanged, with the proposed increases tied to multiyear business performance and shareholder returns. The changes would also place greater emphasis on management decisions rather than volatile commodity prices.
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Rio is consulting investors before submitting a final remuneration policy for a vote at next year’s annual general meeting.
The changes could face scrutiny from shareholders weighing higher executive rewards against company performance. One shareholder suggested the proposal could also encourage rival miners, including BHP (ASX: BHP), to reconsider their compensation structures.
Trott became chief executive in August 2025 after an internal leadership contest to replace Jakob Stausholm. His appointment came with a 5% increase in base salary to £1.4 million and £610,000 in relocation expenses to move from Perth, where he oversaw Rio’s iron ore operations, to London.
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Since taking the top job, Trott has pledged to improve operating performance, reduce costs and release capital through asset sales. He also led unsuccessful merger discussions with Glencore (LON: GLEN) earlier this year.
Executive talent race
Rio’s proposal comes amid a wider escalation in executive compensation among major British companies, particularly as employers seek to narrow the pay gap with US competitors.
Median CEO compensation among FTSE 100 companies rose 18% year-on-year to £5.89 million in 2025, according to an April report by Deloitte.
Pay has climbed particularly sharply in Britain’s aerospace, engineering and manufacturing sectors over the past two years. Nearly 60% of FTSE 350 companies proposed compensation increases during this year’s annual meeting season, according to proxy advisory firm Glass Lewis.
Competition is also reshaping leadership teams within mining, where companies developing energy transition metals are recruiting executives with experience managing large international operations.
BHP executive Rag Udd is leaving to become CEO of Albemarle (NYSE: ALB), while French miner Eramet approached Rio Tinto executive Jerome Pecresse about its top position within the past year, according to Reuters.
Albemarle taps BHP veteran Udd as next CEO
Both Albemarle and Eramet are developing lithium projects to supply the electric vehicle battery market, where technical expertise and operational leadership remain important to long-term growth.
Executive pay proposals can also face shareholder resistance. Last year, Anglo American (LON: AAL) withdrew a plan to guarantee substantial bonuses for senior executives tied to its merger with Teck Resources (TSX:TECK.A | TECK.B).
Still, some investors see higher compensation as a way to improve performance.
“As long as it is aligned with shareholders, I’m quite happy,” George Cheveley, portfolio manager at Rio Tinto shareholder Ninety One, told Reuters when asked about executive pay in mining.