Mining major Rio Tinto has stripped CEO Jean-Sebastian Jacques, iron-ore CEO Chris Salisbury, and group executive of corporate relations Simone Niven of performance-related bonuses for 2020, following the destruction of the Juukan Forge rock shelters in the Pilbara.
Rio said in a statement on Monday that an internal review into the incident concluded that while the company had obtained legal authority to impact the rockshelters, it fell short of the standards and internal guidelines that Rio set for itself, over and above its legal obligations.
“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, underpinned by flaws in systems, data sharing, engagement within the company and with the Puutu Kunti Kurama and Pinikura (PKKP), and poor decision making,” the company said in a statement.
In light of the findings of the review, the board has decided to strip the executives of their performance-related bonuses for 2020, while Jacques’s 2016 long-term incentive plan award, which is due to vest in the first half of 2021, will also be reduced by £1-million, subject to vesting.
Jacques’s lost payments amount to more than £2.7-million, while Salisbury will miss out on an estimated A$1.1-million, and Niven on about £525 000.