Rio Tinto Proposes 56% CEO Pay Hike to £9.8 Million to Compete for Talent

Rio Tinto's board has proposed a 56% increase to Chief Executive Simon Trott's target remuneration package, which would bring his total target pay to £9.8 million ($12 million). The move is part of a broader effort to remain competitive in attracting and retaining senior leadership amid a heated global market for executive talent, according to a Reuters report citing company documents and people familiar with the matter.

Details of the Proposal

The proposed changes, which require shareholder approval at the company's annual meeting next year, would primarily boost performance-linked incentives rather than fixed pay. If approved, the new policy would cover Trott's remuneration for the next three years.

Key changes outlined in briefing documents include:

• An increase in Trott's maximum potential remuneration by 63% to £18.3 million.
• The maximum short-term incentive would rise to 300% of base salary, up from 200%.
• The long-term incentive limit would increase to 900% from the current 500%.

Ben Wyatt, chair of Rio Tinto’s remuneration committee, told Reuters the revised structure is "designed to drive business performance in the interests of shareholders, support the delivery of Rio Tinto’s long-term strategy, and attract and retain strong leadership in a competitive global market."

A Widening War for Talent

Ad

Rio Tinto's proposal comes as competition for executives intensifies, particularly from the defense, aerospace, and energy transition sectors. In response, the world's second-largest listed miner has widened its peer group for benchmarking executive pay to include U.S. energy majors Chevron and ExxonMobil, as well as GE Aerospace, according to an investor presentation reviewed by Reuters.

This reflects a broader trend of non-U.S. companies raising executive pay to narrow a significant transatlantic gap. For comparison, ExxonMobil CEO Darren Woods earned $33 million in 2025. The move also follows a 14% rise in median total remuneration for mining industry CEOs and CFOs this year, driven by performance incentives, according to a Bedford Group report cited by Reuters.

Investor Scrutiny Expected

While the board positions the pay hike as a strategic necessity, it has prompted concern among some investors. Critics worry the move could trigger a salary race among senior Australian mining executives and risk reputational damage during a period of widespread cost-of-living pressures.

However, other shareholders may support the increase if it is directly tied to performance. George Cheveley, a portfolio manager at Rio Tinto shareholder Ninety One, told Reuters that higher pay for mining executives could be justified if it is aligned with shareholder interests. The proposal would place Trott's pay ahead of his rival at BHP, Brandon Craig, whose remuneration is expected to be about $10 million.