The Chief Executive and the largest shareholder of Glencore International Plc (LON:GLEN), Ivan Glasenberg, will earn a dividend as high as $173 million for 2012, even after the company reported a decline in profits. That’s 5 percent more than its 2011 payout and reflects “our confidence in our business and the continued ramp-up of our brown-field industrial assets,” the trader said today.
Glencore paid out dividends worth $1.07 billion last year. The final dividend announced is $735 million, which is to be paid in June after the consent of investors. Glasenberg’s 16 percent stake is valued at about $6.3 billion.
Glasenberg was an accountant and later turned into a coal trader. He joined Glencore, the largest publicly traded commodities supplier in 1984 and became the CEO in 2002. Glasenberg reaped approximately $163 million in dividends for 2011, when the payout was 15 cents a share. He planned to invest the final dividend in the company’s stock at that time. However, for the current year he has not decided over dividend.
Directors and employees of Glencore International Plc (LON:GLEN) owned approximately 83.1 percent of Glencore International Plc (LON:GLEN) after the Initial public offering priced at $10 was issued in 2011. The directors Daniel Mate, Telis Mistakidis, Tor Peterson and Alex were some of the directors who turned into billionaires after the listing of the stock. . The largest shareholders are subject to the conditions requiring them to hold their stock for varying periods, according to the IPO prospectus.
Glencore International Plc (LON:GLEN) seeks to follow progressive dividend policy and increase the total dividend every year, according to the company website.
Glencore International Plc (LON:GLEN) reported a 25 percent downfall in 2012 profit as sluggish global economic growth battered demand for raw materials. Net income excluding “significant items” came down to $3.06 billion, it said. That compared with the $3.14 billion estimate of five analysts compiled by Bloomberg. The company will pay a final dividend of 10.35 cents per share, in addition to its first half award of 5.4 cents, according to a Switzerland based company, Baar.
Commenting on the earnings of the company, Ivan Glasenberg, said, “Despite the challenging environment faced by the mining industry, Glencore delivered organic growth in its industrial [mining] businesses which complemented a robust performance in its marketing operations.”
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