Rio Tinto PLC (LON:RIO) has appointed Jakob Stausholm, who recently stepped down as group chief financial officer of Danish shipping firm AP Moller-Maersk, to succeed Chris Lynch as its chief financial officer.
The FTSE 100-listed miner said Stausholm will join as an executive director and take over as chief financial officer on 3 September 2018.
READ: Deutsche Bank cuts Rio Tinto to ‘hold’ from ‘buy’, thinks medium-term iron ore demand risks will limit re-rating
It added that Lynch will stand down from the board on 3 September 2018 and, as previously announced, will retire from Rio Tinto on 30 September 2018, following a smooth transition.
Lynch joined the Rio Tinto board in September 2011 and was appointed chief financial officer in April 2013.
The group noted Stausholm has over 20 years' experience working in senior finance roles in Europe, Latin America and Asia. It pointed out that he spent over 19 years with Royal Dutch Shell PLC (LON:RDSA) in numerous finance positions globally.
Rio Tinto chief executive J-S Jacques said "I am delighted Jakob is joining Rio Tinto and I look forward to working closely with him as we continue to deliver superior returns to our shareholders.
“The experience he has gained in various senior financial and strategy roles globally will be invaluable, as will his deep knowledge of both the resources and logistics industries.”
Solid choice, says RBC Capital
In a note to clients, analysts at RBC Capital commented: “Following a long period of transition for current CFO Chris Lynch, the appointment of Jakob Stausholm, ex-Group CFO of AP Moller Maersk appears in our view to be a solid choice.”
They added: “The appointment of an executive from outside the mining industry should be taken positively by investors, in our view, as the industry continues to try and improve its long-term capital allocation track record.”
RBC Capital reiterated a ‘sector perform’ rating and 3,900p price target on Rio Tinto shares. In late morning trading, the stock was trading at 4,379p, down 0.9% on Monday’s close.
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