BHP Billiton plc (LON:BLT) has named packaging executive Ken MacKenzie as its next chairman, a tricky job given recent calls from activist investor Elliott Management for the global mining giant to offload its petroleum business and overhaul the board.
MacKenzie, who was considered one of Australia's most successful chief executives in his 10 years running Amcor Ltd, will succeed current BHP chairman, Jac Nasser from September 1.
READ: Activist shareholder Elliott Management calls on BHP Billiton to "upgrade" its board of directors
Canadian-born MacKenzie presided over a long stretch of prosperity at Amcor, which makes packaging for food producers, industrial companies and pharmaceutical firms. He also replaced 75% of Amcor's top 80 managers in his first two years at the company, according to Reuters.
In a statement, MacKenzie said "As incoming Chairman, I look forward to engaging with shareholders and other stakeholders over the coming weeks to understand their perspectives.
“I am committed to the creation of long-term value for all of our shareholders and will work tirelessly with the Board and management to achieve this."
In a separate statement, Elliott said it supported the appointment of MacKenzie as a "constructive step in bringing much needed change to the direction of BHP."
Earlier this week, ahead of BHP’s meeting this week in Chile to elect the new chairman, Elliott had called for the group to "upgrade" its board of directors .
In a statement, the US investment group said: "BHP has an entrenched board, with long-tenured directors having approved the disastrous acquisitions and poorly timed share buybacks that are at the root of much of today's underperformance.”
In April, Elliott, a New York-based fund which has built up a 4.1% stake in BHP, urged the firm to consider some radical moves to unlock shareholder value.
In a letter sent to BHP Billiton directors, Elliott has said the firm should scrap its dual-corporate, Anglo-Australian structure, demerge its oil business and rejig its capital return policy.
READ: BHP Billiton outlines plans to grow value after Elliott Management calls for strategic review
Since then the investor has backtracked on its proposal for BHP Billiton to have its main listing in London, following opposition from the Australian government, but has repeated calls for the firm to overhaul its petroleum business.