Anglo scraps executive bonus vote as Teck merger decision looms

[Ben Graham]

Anglo American (LON: AAL) has dropped a proposal to change executive bonus awards from the agenda of this week’s shareholder vote on its merger with Canada’s Teck Resources (TSX:TECK.A | TECK.B) after investors objected to the plan.

The company said the merger now hinges only on approval to issue new shares, not on executive pay changes. It added that its remuneration committee will consult investors ahead of an updated pay policy at the 2026 annual meeting. 

The withdrawn proposal had sought a 62.5% minimum vesting of 2024 and 2025 share awards for executive directors, tied to completion of the Teck merger, and required a separate resolution because it fell outside the current remuneration policy.

Anglo American noted the incentive plan was meant to support the deal and help retain senior leaders as the merger would shift the company’s headquarters to Canada.

Decade’s top deal

The proposed $53-billion transaction would create a major copper producer but but still needs regulatory approval. 

The merger vote comes after BHP (ASX:BHP) briefly attempted to buy Anglo last month before abandoning its offer three days later. 

Anglo has long been seen as a takeover target thanks to its copper portfolio, though its diamonds and platinum businesses have complicated past bids. 

Shareholders of Anglo and Teck will vote on the deal Dec. 9. If approved, the combined miner would rank among the world’s top five copper producers with annual output of 1.35 million tonnes, topping Chile’s Escondida mine’s 2024 production of 1.28 million tonnes.

It would be the largest mining deal of the decade.