Companies

Sep 7, 2012

Have BHP shareholders got their money’s worth?

Marius Kloppers should be grateful to his predecessors at BHP for creating a company able to withstand a series of multibillion-dollar management blunders.

Adam Schwab — Business director and commentator

Adam Schwab

Business director and commentator

Marius Kloppers should be grateful to his predecessors at BHP for creating a company able to withstand a series of multibillion-dollar management blunders that would have crippled other companies. The former McKinsey management consultant has failed in almost every major decision he’s made as Australia’s largest mining company, but that hasn’t stopped the BHP Billiton board from paying him, and his executive team, hundreds of millions of dollars of shareholder funds.

4 comments

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4 thoughts on “Have BHP shareholders got their money’s worth?

  1. The Pav

    Could somebody tell me why Kloppers & his crew aren’t held to account?

    What the reaction would be if the PS wasted money at that rate?

    Why don’t the funds act? after all they are supposed to represent the interests
    of their investors

  2. Dogs breakfast

    Pav is exactly right. In fact BHP is only the best (worst?) one example in a string of failures by Aust’s largest companies.

    At least 3 out of the 4 banks have nearly been imperilled by their Board/CEO decisions. Rio Tinto has strong claims to being even worse given their abject failures of recent years. For sheer, utter, bald-faced incompetence it would be a brave person who decides which is the most egregious case.

    You have to love them, Kloppers and his CFO didn’t take their bonuses this year. No doubt they will get double next year to compensate.

    I can’t believe they are still employed.

    I’m so glad BHP did a world wide recruitment search to find Kloppers. God forbid, it takes international talent to be that bad.

  3. Pedantic, Balwyn

    Let me tell you a story about Mr Kloppers. It demonstrates his qualities as a man and his total lack of responsibility for his personal conduct.

    Mr Kloppers’s child damaged article(s) at their school. The response from Mr Kloppers that the school was responsible for the child’s behavior and that he certainly wouldn’t recompense the school.

    So if you won’t take responsibility for your kid’s behavior, what would you expect from the man charged with operating a national institution. It’s everyone’s fault bar mine. Just pay me the bonus!

  4. dunph

    The company known as “the Dumb Australian” after a litany of investment disasters still gets the prize for making the most money by adding the least cost: just dig-it and ship-it.

    Kloppers’ job is NOT to grow the business but rather to minimize the stupid decisions made with the free cash made available by digging up the Pilbara – nice work if you can get it !!

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