BHP Billiton settles with ex-CEO Gilbertson

Not bad for half a year’s work: after serving only six months as CEO of BHP Billiton (BHP-N) before quitting, Brian Gilbertson has been awarded a 4.1-million pound (US$6.7-million) settlement.

Gilbertson left BHP Billiton in early January, two and a half years earlier than the date provided under his employment contracts.

Gilbertson worked for BHP Billiton, Billiton and its predecessor companies for 32 years, and was widely seen as the architect behind the 2001 merger of BHP and Billiton, which created the world’s largest mining company.

BHP will also be paying Gilbertson an array of benefits that could eventually eclipse the value of the original settlement:

* 602,575 pounds (US$985,000) per year in pension benefits for the rest of his life.

* the retention of rights to a maximum of 228,685 BHP Billion shares (worth US$2.6 million at presstime) out of the total rights for 760,110 held at the time of resignation.

* 150,000 pounds (US$245,000) for moving expenses following his departure.

* medical insurance for him and his wife until mid-2005.

“We have resolved this matter on the terms specified in our contract with Mr. Gilbertson”, BHP Billiton Chairman Don Argus said in a release. “The decision on the separation payments has the unanimous support of the board”.

In mid-May, Gilbertson was retained by London-based Lonmin to serve as a consultant. The company is considering moving beyond its South African platinum-group-metals production and transforming into an international diversified mining company.

Within a few days of his appointment, Lonmin was swept up in the proposed takeover by AngloGold of Lonmin’s 28%-owned affiliate Ashanti Goldfields.