BHP Billiton has announced that former Ford Motor Company president Jac Nasser will take over from Don Argus early next year when the long-serving chairman retires.
BHP Billiton has announced that former Ford Motor Company president Jac Nasser will take over from Don Argus early next year when the long-serving chairman retires.
Mr Nasser, 61, has been with the BHP Billiton board since 2006 and spent 33 years at Ford Motor Company, including as president until he left in 2001.
"Jac Nasser will succeed Don Argus as chairman when Mr Argus retires as chairman and a non-executive director in early 2010," BHP Billiton confirmed in a statement on Tuesday.
Known at Ford as "Jac the knife" because of his fierce approach to cost-cutting, Nasser was born in Lebanon and came to Australia aged four.
UBS resources head of resources research Dr Glyn Lawcock said Mr Nasser may also push for BHP Billiton to become a leaner company when he joins the board.
"He may call for a more concerted effort on cost-cutting," Dr Lawcock said, noting that many companies, including miners, did "swell in size" when the global economy was booming.
Mr Nasser is based in the US state of Michigan but is expected to have committed to spend much of his time in Melbourne as part of his new job.
The world's largest mining company said Mr Nasser had extensive international business experience and the move to appoint the incoming chairman came after an 18-month selection process.
As part of the process candidates for the role were whittled down to just two, Mr Nasser and BHP Billion board member John Schubert.
Director John Buchanan, who chaired the panel which oversaw the succession process, said Mr Nasser will make an excellent successor to Mr Argus.
"He combines deep international business knowledge along with outstanding financial, senior management and board experiences," Mr Buchanan said.
"The board looks forward to Jac leading the group as chairman," he said.
The 14-member BHP Billiton board began meeting in Melbourne on Monday, with the succession of the 71-year-old Mr Argus on the agenda.
"In making this announcement, the board pays special tribute to the immense contribution Don Argus has made to BHP Billiton over many years of dedicated service," the company said.
"In the thirteen years since he joined the BHP board, and particularly over his ten years as chairman, Don has led BHP Billiton to the distinctive leadership role in its sector."
As part of the transition it is expected Mr Argus will stand for re-election at the upcoming annual general meetings and retire from the board in early 2010.
Dr Lawcock said Mr Argus will leave behind a company very different from the one he joined in 1999.
"Ten years ago it (BHP) was a company on its knees," Dr Lawcock said.
"They had a lot of investments they were writing off.
"Don Argus oversaw the merger with Billiton, and the acquisition of Western Mining.
"They now have a very rigid investment process in place. They have a very strong balance sheet," he said.
But Mr Lawcock said it was not all smooth sailing during Mr Argus' tenure at BHP Billiton, with the outgoing chairman overseeing the approval and subsequent abandonment of the Ravensthorpe nickel mine in Western Australia.
The mine, which closed after the price of nickel plunged, forced BHP to write-off an investment valued at $US3.3 billion ($A3.92 billion) and meant 1,800 workers and contractors lost their jobs at the mine.
Australian Shareholders' Association representative Duncan Seddon said it was important Mr Nasser did not try to do the work of chief executive as well.
The announcement is below:
The BHP Billiton Board today announced that Jac Nasser will succeed Don Argus as Chairman when Mr Argus retires as Chairman and a Non-executive Director in early 2010.
Jac Nasser joined the BHP Billiton Board as a Non-executive Director in 2006 and is a member of the Board's Risk and Audit Committee.
He has extensive international business experience gained during his 33 years with the Ford Motor Company where he was President and Chief Executive Officer. Jac Nasser is also a Partner of One Equity Partners, the private equity arm of JP Morgan, a Director of British Sky Broadcasting plc and sits on the International Advisory Board of Allianz A.G.
Senior Independent Director for BHP Billiton Plc, John Buchanan, chaired the Board which oversaw the entire chairman succession process.
"Jac Nasser will make an excellent successor to Don Argus as Chairman. He combines deep international business knowledge along with outstanding financial, senior management and board experiences. The Board looks forward to Jac leading the Group as Chairman." John Buchanan said.
The decision to appoint Mr Nasser was agreed by the Board following an 18 month selection process. The international recruitment firm, Heidrick & Struggles, was engaged as independent adviser by the Board to assist the Board in its deliberations and consideration of both internal and external candidates. KPMG supported the final process as scrutineer.
The Director renewal process underway for the past seven years ensured high quality internal candidates.
In making this announcement, the Board pays special tribute to the immense contribution Don Argus has made to BHP Billiton over many years of dedicated service. In the thirteen years since he joined the BHP Board, and particularly over his ten years as Chairman, Don has led BHP Billiton to the distinctive leadership role in its sector.
Mr Buchanan said that as part of the transition Mr Argus will stand for re-election at the upcoming Annual General Meetings and will retire from the Board in early 2010.
