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Xstrata FD to leave post-merger with Glencore

Trevor Reid calls time on an 11 year stint at the mining company

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Xstrata group's veteran finance director Trevor Reid will not be taking up the same position following its merger with Glencore.

Reid, who was among a select group of executives instrumental in raising Xstrata's profile and financial standing over the last 11 years, said on Tuesday that he would not be taking up the CFO post at the merged mining and commodity trading giant GlencoreXstrata.

The US$31 billion merger was finally approved on 20 November. Xstrata said Reid would be a consultant to the combined group for up to six months after the completion of the merger.

His departure follows criticism over a controversial post-merger executive pay plan that was voted down by a minority of shareholders. Xstrata had long argued that the plan was crucial to the positive realisation of the merger as it would ensure that key executives stay on and oversee it.

It offered 73 senior executives a total of £170 million in pay and Xstrata insisted over the summer that the takeover would be tied to the pay deal.

However, given the mining company's complex voting structure and an abstention by key shareholder Qatar Holdings, the motion against the pay plan was carried despite being backed by the company's chairman John Bond and chief executive Mick Davis.

Reid joined Xstrata in 2001 from JP Morgan and his profile is the stuff of City folklore. Together with Davis, he built the company from a £300 million niche zinc business to a £50 billion global mining conglomerate at the time of its takeover by Glencore.

Announcing Reid's departure, Davis paid tribute to his departing finance director.

"Eleven years ago, I persuaded Trevor to leave a successful banking career to embark upon the transformation of a struggling company in a precarious financial position with limited options. Xstrata's evolution into one of the world's leading mining companies has exceeded even our initial ambitions and is a testament to Trevor's skills and contribution as an executive director and CFO," he said.

Davis was himself recently replaced at the helm of the newly created GlencoreXstrata by Glencore's Ivan Glasenberg as part of a deal that improved the terms of the takeover in September.


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