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AUSTRALIA - Rio Tinto Ltd agreed to disburse former CEO Sam Walsh’s pay as a part of his deferred bonus after finding a resolution to their dispute on Thursday.
Rio Tinto’s board and Walsh settled to delay incentive payments in 2017 while investigations were being made in the United Kingdom. This is because of the transactions made to a consultant in connection to a Rio iron ore project in Guinea. Walsh was the CEO at that time when the payment was made.
"Rio Tinto felt that a further deferral of the amounts that were payable on 31 December 2018 was appropriate given that the regulatory investigations in relation to the Simandou matter are ongoing. However, the parties could not agree to extend the deed of deferral," Rio Tinto mentioned in their statement.
Rio Tinto determined that Walsh’s payment should not be subject to any further deferrals and are payable.
In a separate announcement, Walsh stated that Rio will pay him $6.8 million AUD ($4.40 million USD) as a portion of his long term and short term incentive awards plus interest. Two more payments are yet to be made in December 2020 and another one in May 2021.
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