BHP Billiton appoints Ken MacKenzie as chairman

Ken MacKenzie has been elected to succeed Jac Nasser as chairman of BHP Billiton with effect from 1 September following Nasser’s retirement.

The appointment follows a formal chairman succession process led by senior independent director, Shriti Vadera.

MacKenzie - who has extensive international business experience gained during his 23 years at global packaging company Amcor - joined the BHP board as a non-executive director in September 2016 and is a member of the Sustainability Committee.

MacKenzie served as managing director and chief executive officer for 10 of his 23 years at Amcor.

Shriti Vadera said: "As we announce the election of a new chairman, the BHP board would like to recognise the outstanding contribution of our retiring chairman, Jac Nasser. Jac has been a director for 11 years, the last seven as chairman, and has led the company during a period of extraordinary change in the resources industry. We thank him for his long and distinguished service to BHP.

"With the assistance of Heidrick & Struggles, a leading international recruitment firm, the board undertook a rigorous search and assessment of potential external and internal candidates against clear skills and performance criteria.

"Ken MacKenzie brings extensive global executive experience and a strategic approach. He has a proven track record of delivering value for shareholders. He has the operational and financial capabilities as well as the rigour necessary to effectively oversee BHP's capital allocation framework."

Earlier this week, activist investor Elliott Management said BHP's new chairman should "review" and "upgrade" the mining group's board of directors, citing the backing of several other major shareholders.

Elliott, which blamed management for "destroying tens of billions of dollars in shareholder wealth" from its expansion into the US petroleum business and share buybacks "at inflated prices", said the new appointee should "reconstitute and refresh the BHP board of directors".

“BHP has an entrenched board, with long-tenured directors having approved the disastrous acquisitions and poorly timed share buybacks that are at the root of much of today’s underperformance,” the New York hedge fund said in an open letter. "A significant upgrade in directors is needed."