Stausholm disagreed with Rio’s board on Glencore tie-up

RIO Tinto and the group’s CEO Jakob Stausholm agreed to part ways amid concerns he was reluctant to prioritise cost management and explore key strategic opportunities, said Reuters citing six sources familiar with the matter.The world’s second-largest listed mining company surprised investors last week by announcing Stausholm would step down later this year, though no official reason was given for his departure.Board tensions escalated as Stausholm became increasingly resistant to directors’ suggestions, particularly his swift rejection of merger discussions with Glencore executives last year, said Reuters.The Financial Times also said a disagreement over a tie-up with Glencore was a reason, citing three sources familiar with the matter. The paper added the board wanted someone with more mining experience.Sources told Reuters the Danish CEO also showed reluctance to review options around the company’s relationship with Chinalco, its largest UK shareholder, despite investor pressure to examine Rio’s dual Anglo-Australian listing structure.However, the primary source of friction centred on Stausholm’s resistance to immediate cost reduction measures. Under his leadership since 2021, Rio’s headcount climbed 22% to approximately 60,000 employees whilst revenue dropped more than $10bn.With iron ore prices expected to decline further, the board demanded greater focus on cost cuts and operational excellence, but Stausholm viewed himself as a strategic leader rather than a cost-cutter.This fundamental disagreement with directors became increasingly problematic as they grew concerned about what one Reuters source described as a “bloated bureaucracy.”Despite warnings from CFO Peter Cunningham about ballooning costs, Stausholm remained focused on growth investments, including recent lithium acquisitions worth billions.The board ultimately concluded that Rio required operational discipline over visionary leadership, leading to their decision to seek new management whilst maintaining the company’s strategic direction.Glyn Lawcock, an analyst with Barrenjoey, told the Financial Times that although the timing of the leadership change appeared sudden, a switch to an operationally-focused leader was expected at some time.“With [the chair] Barton, you have a statesman running the company who can deal with all the politics, who is saying what I need now is someone to drive growth, someone with resources in their blood,” he told the newspaper.The post Stausholm disagreed with Rio’s board on Glencore tie-up appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com