Glencore, the Swiss commodities giant, on Friday unveiled its succession plan to take over from its iconic boss, South African billionaire Ivan Glasenberg, the choice falling on Gary Nagle, an executive who has been a big part of his career in coal.
The group active in the trading of raw materials but also owner of many copper and coal mines, will give him the post of general manager during the first half of next year, he said in a press release.
However, he did not specify the effective date of the much anticipated passing of the torch.
Currently stationed in Sydney, Australia, Nagle, who heads the group’s coal activities, is due to move to Switzerland at the start of the year to work alongside Ivan Glasenberg to ensure the transition, said the Minister. Swiss group.
“The board of directors has worked with Ivan for the past two years to work towards a smooth transition to the next generation,” said Tony Hayward, its chairman, and former boss of British oil group BP, quoted in the statement.
This change is taking place in a context of “profound changes”, added Mr. Hayward, referring to the shock of the Covid-19 pandemic but also “the challenge” of climate change.
“Our industry has a significant opportunity to contribute to the economic recovery by providing raw materials essential for the transition to a low-carbon economy,” he said.
Despite criticism of coal, the choice fell on this framework which has made up a large part of his career in this sector.
Also of South African nationality, Mr. Nagle, 45, joined Glencore in 2000 in Switzerland as part of the coal development team, before leading for five years Prodeco, which brings together the group’s coal activities in Colombia, from 2008 to 2013.
– Generation change –
He then headed Glencore’s activities for alloys in metals in South Africa from 2013 to 2018.
“I have worked with Gary since he joined the company twenty years ago,” said Ivan Glasenberg, quoted in the statement, adding that he had always viewed a “critical” role in his role as to bring out “the next generation” of leaders for the group, saying they are “proud” of the work accomplished.
Known for his pugnacity in business, Mr. Glasenberg, who owns a 9.09% stake in the group, making him the second largest shareholder behind the sovereign wealth fund Qatar Holding, Glencore pilot since 2002.
He was the architect of the group’s IPO on the London market in 2011, then of its merger in 2013 with the mining giant Xstrata, which had greatly increased the weight of its activities in copper.
He intends to leave his post of CEO but also his seat on the board of directors in 2021.
Around 4:35 p.m. GMT, Glencore shares jumped 3.10% on the London Stock Exchange to 237.65 pence after this announcement on the succession plan, while the FTSE100, the benchmark of the Stock Exchange of London climbed 0.95%.
In 2019, the group suffered a loss of $ 404 million, against a profit of $ 3.4 billion a year earlier, due to asset write-downs, particularly in copper mines in Africa. In the first half of 2020, the group further increased its losses, to $ 2.6 billion.
In 2018, Glencore was shaken by a subpoena from the American justice in the context of a vast investigation for corruption in Nigeria, Venezuela and the Democratic Republic of Congo (DRC).
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