Less than 24 hours after BHP (ASX, LON, NYSE: BHP) named Canadian Mike Henry as the company’s new chief executive and executive director, praise from different industry actors and analysts keeps flowing in.
“Ethical”, “thoughtful”, “gender-equality
champion”, are just some of the adjectives thrown at Henry, 53, who will assume
the top position at the world’s biggest miner in January 1, 2020, replacing
Andrew Mackenzie.
An industry veteran with 30 years of
experience in the sector, including 16 at BHP, Henry represents a much needed breeze
of fresh air in the mining industry.
Beyond advocating for “performance and improvement”, what he told reporters Thursday was his main focus, Henry is expected to steer BHP towards becoming the company the world truly needs now— environmentally sound, gender-inclusive, local communities-respectful and supportive kind of miner.
“If our communities don’t trust us or don’t feel they benefit from our presence, we eventually lose our ability to operate there — and rightly so.”
Mike Henry, BHP’s new chief executive and executive director.
“Social value is not an elective for
this company,” Henry — who is also a former chief marketing officer — declared following the announcement of his
new role.
“At BHP we know that if our communities don’t trust us or don’t feel they benefit from our presence, we eventually lose our ability to operate there — and rightly so,” he said last year at an industry forum.
It sounds too good to be true. It
also seems like a lot of pressure and expectations for just one person. The
key, analysts say, would be for Henry to surround himself by the right people.
The upcoming chief has already said
he’d be touring BHP’s global operations for the rest of the year before setting
out proposals for “strategy shifts” and “possible changes to the team of top
executives”.
“As a concept, this is what
shareholders want — efficiencies and improvements,” said Craig Evans, a
Sydney-based portfolio manager at Tribeca Investments Partners Pty. “It’s going
to be a big focus for everybody, and it would be good to see how he thinks that
can be implemented.”
“He leads by example,” a
former colleague who worked with Henry for several years said. “He doesn’t play
games and for a guy in that position, he has his ego totally in check,” the
source, who asked not to be named, added.
Investment bank RBC Capital
Markets, however, doesn’t see a revolution in the making.
“Considering [he] has been a member
of the executive leadership team since 2011 we would expect that, in the near
term at least, that BHP’s focus on disciplined capital allocation will remain
largely unchanged,” RBC’s Tyler Broda said.
Henry, a guitar-player with two adult daughters, joined BHP from Mitsubishi in 2003 and has spent the past three years at the helm of the company’s Australian business.
(With files from Bloomberg, Reuters)