Shares of Rio Tinto PLC (LON: RIO) are trading around 2.5% higher on Monday after the mining giant said that it will only cut bonuses for a part of its senior management and not axe them.
The decision is a result of a review process of the company’s destruction of two ancient caves in Australia. Rio damaged these two sites in Western Australia while working on the expansion of one of its mines.
“The review found no single root cause or error that directly resulted in the destruction of the rockshelters. It was the result of a series of decisions, actions and omissions over an extended period of time,” the company said in a statement.
As a result, CEO Jean-Sébastien Jacques, Chris Salisbury (Chief Executive of Iron Ore), and Simone Niven (Group Executive, Corporate Relations) will lose $3.7 million in bonuses altogether in 2020.
“The Rio Tinto board has come to an informed judgment that the sanctions that have been applied to senior executives are appropriate,” Michael L’Estrange, who led the review, told Reuters.
Jacques will lose another million pounds in a sanction. He received 5.8 million pounds last year.
Rio Tinto share price around 2.5% to trade at 4800p.