Investors in Rio Tinto Group should oppose its policy on pay and dividends at the annual meeting of shareholders of the world’s second-biggest mining company this month, said Pensions & Investment Research Consultants Ltd.
Rio Tinto Group, the world’s second- largest mining company, bolstered its dividend after reporting a 43 percent gain in second-half profit as prices for iron ore advanced and it beat a cost-cutting target.
Rio Tinto Group Chief Executive Officer Sam Walsh is charting a course to potentially bolster cash returns to investors in the world’s second-biggest mining company after cutting $2 billion of costs ahead of schedule.
BHP Billiton Ltd. offers a dividend return twice as high as Australia’s one-year bond yield, underpinning the strongest rally in stocks in seven months as the nation’s sovereign debt slumps to the world’s biggest loss.
When Rio Tinto Group decided it had to part with Chief Executive Officer Tom Albanese, the second- largest mining company turned to Sam Walsh, whose iron ore unit has generated almost $40 billion in profit in seven years.
Iron ore extended its decline into a bear market on concern that demand in China may slow as credit tightens in the largest buyer, exacerbating the impact of rising global supplies that are seen spurring a surplus.