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Summary Terms of Employment (107.5 KB)

Number 29/03

The Board of BHP Billiton today approved the terms of employment for Chief Executive Officer, Charles (Chip) Goodyear.

In announcing details, BHP Billiton Chairman, Don Argus, said that the terms reflected the remuneration policy of the BHP Billiton Group in that:

• Mr Goodyear’s remuneration is competitive and set at the level necessary to secure the services of a chief executive for the world’s largest diversified resources company;
• a significant portion of total potential remuneration is ‘at risk’ and subject to the performance of the Group as a whole;
• demanding performance hurdles are applied to the short and long-term incentives, which make up the ‘at risk’ component.  If BHP Billiton performs in the bottom 50% of peer companies, Mr Goodyear will not receive any long-term incentives.  BHP Billiton will need to perform in the top 15% of peer companies and generate significant earnings per share growth for Mr Goodyear to realise 100% of the long-term incentives; and
• termination rights and payments are defined, as far as possible, to ensure that the Group, its shareholders and Mr Goodyear have certainty about the way in which entitlements will be treated on termination and, in particular, that payments are not made for non-performance.

 Mr Argus said that in formulating the contract, the Group had the benefit of many executive remuneration guides published recently by shareholder groups in Australia and the United Kingdom.

A summary of the key terms of the contract is set out in the attached schedule.  Details of the contract will also be included in the Remuneration Report that will form part of the Group’s Annual Report due to be published in early October.  Shareholders will be invited to consider and approve the Remuneration Report at the annual general meetings to be held in London on 24 October and in Melbourne on 13 November 2003.

For further information contact:

Australia
Andrew Nairn, Investor Relations
Tel: +61 3 9609 3952  Mobile: +61 408 313 259
email: Andrew.W.Nairn@bhpbilliton.com

Tania Price, Media Relations
Tel: +61 3 9609 3815  Mobile: +61 419 152 780
email: Tania.Price@bhpbilliton.com

United Kingdom
Mark Lidiard, Investor & Media Relations
Tel: +44 20 7802 4156  Mobile: +44 7769 934 942
email: Mark.Lidiard@bhpbilliton.com

Ariane Gentil, Media Relations
Tel: +44 20 7802 4177
email: Ariane.Gentil@bhpbilliton.com

United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625  Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com

South Africa
Michael Campbell, Investor & Media Relations
Tel: +27 11 376 3360  Mobile: +27 82 458 2587
email: Michael.J.Campbell@bhpbilliton.com