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Rio Tinto To Move CEO, CFO On To Rolling Open-Ended Contracts
[October 23, 2014]

Rio Tinto To Move CEO, CFO On To Rolling Open-Ended Contracts


(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - Mining giant Rio Tinto PLC Thursday said it has extended the tenure of of Chief Executive Sam Walsh and Chief Financial Officer Chris Lynch, saying the move provided a strong endorsement of their leadership, the compay's strategy and its focus on driving shareholder value.



"For quite some time, Sam has made no secret of the fact that he loves his job and would like to continue well beyond next year. Given his performance and his enthusiasm to continue in the role, the decision to extend his tenure has been an easy one for the board. In addition, over the past 18 months, Chris has played a crucial role working with Sam and I am therefore pleased that we have agreed with both of them to replace their fixed term retirement dates with long-term, open-ended commitments to the company," Rio Tinto Chairman Jan du Plessis said in a statement.

Walsh and Lynch will transfer to open-ended contracts after Rio Tinto's annual general meetings in 2015, the company said. Walsh's initial contract was due to end on December 31, 2015 with a break clause from October 31, 2014 and Lynch's initial contract was due to end on February 28, 2017. They will both move to a rolling contract with no end date and a 12-month notice period.


To remain compliant with Rio Tinto's remuneration policy, the changes to their respective contract terms will require shareholder approval at the 2015 annual general meetings. If approved, the new contract terms would come into effect immediately afterwards, and remuneration would remain unchanged for both.

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