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Anglo American feathers Carroll’s nest

by Dan Coatsworth

Just over a year after arriving in London to head mining group Anglo American, chief executive Cynthia Carroll has dipped into her salary perks to help fund her British home. The US-born boss has sold £1.4 million worth of shares to help pay for her relocation to the UK capital.

The transaction – of 42,754 shares at £33.55 each – matches a bonus paid to Carroll in March, following her first year’s service at Anglo American. She was awarded 72,464 shares, each priced at $54.8691. Once her employer had settled the tax and national insurance liability by selling 29,710 shares at £33.29 each, Carroll was left with 42,754 new shares.

The City was taken aback when Carroll’s appointment was revealed in October 2006. Her background certainly showed solid experience in natural resources – 18 years with aluminium giant Alcan and a senior geologists with oil group Amoco. However, spectators had expected a bigger industry name, particularly someone with M&A experience.

Carroll has silenced her critics with a solid first year at Anglo American. There has been a few set-backs as the company hasn’t escaped the industry-wide pressures of higher operating costs and Tarmac still hasn’t been sold. Nevertheless, Carroll has successfully demerged packaging arm Mondi; struck a development deal with China Development Bank and invested in future mining resources including major stakes in iron ore, copper and coal projects.

She is paid well with a £900,000 basic salary in 2007. On top of this was £641,000 cash as part of an annual performance bonus, £426,000 benefits in kind and £700,000 ‘other’ remuneration, giving a total of £2.7 million. As part of her joining package, Anglo said it would reimburse expenses from relocating to the UK, which amount to £402,000.

Following the latest share dealing, Carroll is left with 228,787 shares in Anglo. If she were to sell them at current prices, the Anglo American CEO would raise nearly £7.5 million.