Xstrata resumes normal service on executive bonuses

A year ago, with the share price tumbling, Xstrata's remuneration committee reduced bonuses "given the current economic situation" even though, as it explained, executives' performance was "highly creditable." Chief executive Mick Davis still didn't do badly (his total package was worth $5.5m – £3.6m) but this year normal service has resumed. Cash bonuses are back and Davis' package is worth $7.7m before counting the small matter of £14m banked from exercising share options . Xstrata's shareholders probably won't grumble – they're just relieved to see the share price rising strongly again – but their memories ought to be longer. In 2009, the year under review, Xstrata tapped its shareholders for £4bn to pay down debt. It was the right thing to do, but once upon a time raising cash from shareholders to strengthen a balance sheet would be regarded as embarrassing, particularly in an industry that had enjoyed a seven-year bull market for its products. A bonus, especially one at 85% of the possible maximum, would have been out of the question.