Management & Governance
Service contracts
The following table details the key aspects of each executive's service contract.
| T Albanese | G Elliott | R Evans | L Clifford | B Clayton | P Chiaro | A Mackenzie | K Johnson | O Groeneveld | S Walsh | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2007 roles held and commencement date |
Group CEO (1/5/07) Director of Group Resources (7/3/06) | Finance Director (19/6/02) | ED & CEO Rio Tinto Alcan (25/10/07) | Group CEO (30/3/04) until retirement (30/9/07) | CEO Copper & Diamonds (15/11/07) CEO Copper (1/6/06) | CEO Energy & Industrial Minerals (15/11/07) CEO Energy (1/9/03) | Commenced notice period (15/11/07) CEO Industrial Minerals (1/8/04) | Group Executive Business Resources (1/6/07) CEO Diamonds (1/3/04) | Chief Adviser (25/10//07) CEO Aluminium (1/10/04) | CEO Iron Ore (1/11/04) |
| Contract date | 1/5/07 (Contract disclosed (8/5/07) | 19/6/02 | 25/10/07 | 30/3/04 | 1/6/06 | 30/9/03 | 4/5/04 | 12/3/04 | 1/10/04 | 3/8/04 |
| Years of service completed | 26 | 27 | 0 | Retired | 13 | 16 | 3 | 16 | 33 | 16 |
| Standard contract conditions | Pension or superannuation fund participation. Salary subject to annual review. May participate in Rio Tinto Long Term Incentive Plans (LTIP). Participates in employee car scheme in accordance with policy applicable in country of assignment. Participates in medical benefits programs applicable to employees generally in country of origin. Where applicable, receive expatriate secondment packages which may include a housing benefit, repatriation and tax equalization. |
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| Term | It is the Group's policy that executive's service contracts generally have no fixed term, except for the contract for Dick Evans which has a two year term, but are capable of termination giving no less than the notice set out below. | |||||||||
| Notice | 12 months |
12 months |
12 months |
N/A | 12 months |
12 months |
12 months |
12 months |
12 months |
12 months |
| Resignation | Outstanding Long Term Incentive awards under the SOP and MCCP are forfeited as is any pro-rata STIP. | |||||||||
| Retirement | Pro rata STIP paid based on portion of performance period worked. LTIPs subject to performance test at completion of normal performance period and options or performance shares may vest at that time to the extent provided by the performance condition. Options or performance shares held for less than 12 months at date of termination are reduced pro rata. | |||||||||
| Termination by company - general including redundancy | Rio Tinto has retained the right to pay executives in lieu of notice. Given the wide variety of circumstances leading to early termination, the executive's service contracts do not provide explicitly for compensation but, in the event of early termination, including redundancy, it is the Group's policy to act fairly in all circumstances. Pre-existing entitlements may apply under redundancy policies generally applicable to employees in particular regions. Notice may be worked or fully or partly paid in lieu, at Company discretion, and additional capped service-related payments may apply. Compensation would not provide reward for poor performance. In the event of termination except for cause, the plans provide that STIP would be paid based on the portion of the performance period worked. LTIP's would be subject to a performance test at completion of the normal performance period. Options and performance shares may vest at that time to the extent provided by the performance condition. Options or performance shares that have been held for less that 12 months at the date of termination would be reduced pro rata. |
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| Termination for cause | Employment may be terminated by the Company without notice and without payment of any salary or compensation in lieu of notice. Outstanding awards under the SOP and MCCP are forfeited as is any pro rata STIP. | |||||||||
| Change of control | Contractual entitlements to severance are not triggered by a change of control. LTIP rules approved by shareholders in 2004 provide the following in the event of a change of control: SOP: All outstanding performance periods end on the date of change of control and options may vest to the extent that the performance condition has been satisfied at that date. MCCP: All outstanding performance periods end on the date of change of control and performance shares may vest to the extent that the performance condition has been satisfied at that date. If a performance period ends within 12 months of grant, and vested awards will be reduced pro rata. |
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