BHP cuts employee incentives after missing its performance goals, AFR reports
Adds details from AFR report on incentives and targets in paragraphs 3, 6-7 and 9-10
July 4 (Reuters) - BHP Group BHP.AX has notified tens of thousands of its workers across the globe that it was cutting their incentive pay after the miner failed to meet its performance goals, the Australian Financial Review reported on Thursday.
The world's largest listed miner will only pay 80% of short-term incentives that were on offer in 2023-24, the AFR reported, citing BHP's employees.
"The docking of incentives has upset some BHP employees who contacted the Australian Financial Review pointing to hiring freezes in some divisions that impacted the ability to hit targets and what they see as unrealistic internal goals," the report said.
These incentives apply to all of BHP's workers and can add up to about 15% of their salaries, according to thereport.
The company's leadership cited misses on cost and production targets across some of its divisions, as well as the death of a worker at its Saraji coal mine in Queensland in January as the reason behind the incentive cuts, the AFR reported.
Moreover, workers at BHP's Queensland coal division will receive only 70% of their incentives, the report added, following two productionforecast downgrades and the fatality.
This incentive cut comes at a time when Australia's Mining and Energy Union has filed for "same job same pay" orders covering labour-hire workers at BHP's Queensland coal mines, which, if successful, would further weigh on its expenses.
The miner reported in February that itsfirst-half profit was hit by an impairment charge worth $2.5 billion related to its Western Australia nickel business. It also said some global corporate teams were beingdisbanded in an effort to cut costs.
The company has also failed to meet its target of 3% year-on-year growth in the number of female employees to meet its goal ofgender balance by 2025, according to the AFR.
However, BHP said in February it became the first miner in Chile to cross 40% female representation , more than doubling the national industry average.
BHP did not immediately respond to a Reuters request for comment.
Reporting by Aaditya Govind Rao in Bengaluru; Editing by Savio D'Souza and Anil D'Silva
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
