SYDNEY (Reuters) - BHP Billiton (
BHP.AX) (
BLT.L)
on Wednesday unveiled a board shakeup that will see controversial
director Grant King step down six months after joining the company amid
concerns among investors over oil investments.
King, a former chief executive of Origin Energy (
ORG.AX),
was once tipped to succeed Jac Nasser as chairman of the world's
biggest mining company, but was passed over earlier this year for fellow
board member Ken MacKenzie.
"Owing to concerns expressed
by some investors, Grant King has decided that he will not stand for
election at the 2017 annual general meetings of BHP, and will retire
from the board on 31 August 2017," Nasser said in a statement.
BHP is under pressure from
investors led by U.S. hedge fund Elliott Management to rethink its
investment in oil and boost shareholder returns. The company said on
Tuesday it would exit its underperforming U.S. shale oil and gas assets.
King oversaw dramatic growth
at energy retailer Origin during a 16-year stint as managing director.
However, a decision to build a A$25 billion ($19.7 billion) liquefied
natural gas (LNG) plant led to a plunge in the company's share price in
2015 after oil prices plunged just as its debt peaked.
The move came a day after
BHP unveiled a $6.7 billion underlying annual profit and sought to
reassure investors it would allocate future capital with caution and use
excess cash to cut debt and reward shareholders.
Another director, Malcolm Brinded will not to stand for re-election as a non-executive director, BHP said.
The pair will be replaced
by two new independent non-executive directors, Terry Bowen, a finance
director for Australian retail and mining conglomerate Wesfarmers Ltd (
WES.AX) and John Mogford, a former BP Plc (
BP.L) executive.
The pair will take up their roles on Oct. 1.
MacKenzie has spent the past
two months sounding out shareholders over their concerns ahead of his
Sept. 1 start date, BHP has said.
Reporting by James Regan; Editing by Richard Pullin
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