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South32 CEO's bonus cut due to fatalities

AAP logoAAP 8/09/2016 Prashant Mehra

Diversified miner South32's chief executive Graham Kerr earned $4.1 million in 2015/16, but lost more than a third of his short term incentives due to fatal workplace accidents.

Mr Kerr's total remuneration of $4.1 million included a fixed salary of $1.77 million and $1.96 million in short term incentives.

The short term incentives were only 63 per cent of the $3.2 million he could have been entitled to, with the balance forfeited primarily due to four deaths at the company's African operations during the year.

"A number of factors were considered, primarily the number of fatalities in the business during this financial year," the company said in its annual report, released on Thursday.

Half of the short term bonuses were paid in cash and the remainder will be issued as rights to South32 shares in December.

South32 listed on the share market in 2015 after demerging from BHP Billiton, and suffered a $US1.62 billion loss in 2015/16.

Heavy writedowns in its manganese, coal and alumina operations during the first half of the year, on the back of a prolonged downturn in commodities prices, hit the company's results.

South32 said the fixed salaries of its key executives, and fees paid to its directors, would not change in the 2016/17 financial year.

However the company will change the benchmarking of its executive remuneration to a wider group of ASX-listed companies, following a review of the remuneration framework during the year.

It will also allocate long-term incentives using the face value of shares, rather than fair value, in order to simplify practices and communication, it said.

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