Anglo American's chief executive Cynthia Carroll will collect over £3mn as she steps down in the coming month after a six-year stint at the FTSE 100 miner, according to multiple media sources.
Carroll, who will be succeeded by Mark Cutifani, the head of AngloGold Ashanti, is one among the many heads of mining firms to depart this year amid weak earnings and massive writedowns on acquisitions. She had resigned in October after perceived errors and weak returns added to shareholder pressure.
In February, Anglo posted its first net loss in over 10 years and suffered a $4bn hit on the value of its Minas Rio iron ore project. Minas Rio was Carroll's first deal after joining Anglo in 2007 and has proved to be a major factor that forced her departure.
Reuters reported, citing unnamed sources, that Carroll will receive £3.1mn as she leaves, which includes nine months' pay of her 12-month notice period, a £700,000 bonus for the year 2012 and unvested bonus shares.
However, the salary payment, which could be given on a monthly basis, may be cut short if Carroll decides to take up another job during the period. The bonus payment was mean to be given to her regardless of her decision to resign.
She is also supposed to receive further shares under a longer term incentive scheme, which is spread over two years. At current rates, if Carroll receives the maximum entitlements, it would come up to over £3.4mn apart from the bonuses and the wages pay.
Carroll's departure with such a hefty sum may not go down well with her critics, but she is not the only person who has collected similar payments.
The departing head of Xstrata, Mick Davis, will collect a termination payment of about £8bn as the firm merges with Glencore.