Glencore is discussing changes to CEO Gary Nagle’s compensation that could accelerate the vesting of long-term equity awards if the company is acquired and he is replaced. According to Sina Finance, some shares would still have to be held for several years, and the proposed terms are under discussion. The change has renewed speculation about potential deals, after Glencore and Rio Tinto ended talks earlier this year on a proposed merger valued at about $260 billion, citing differences over valuation and the merged company’s management. An investor familiar with the compensation plan said the proposed changes could reignite deal speculation.
Glencore also plans to raise the cap on Nagle’s long-term equity awards by more than 10% and is considering a modest increase to his base salary, which has been unchanged for three years. His total compensation this year was about $7.5 million, including a base salary of about $2 million. Long-term equity awards approved by the board equal 512.5% of his base salary, close to the current 525% cap.