The Rio Tinto Limited (ASX: RIO) share price will be one to watch on Friday after it announced the appointment of its new chief executive after the market close.
What did Rio Tinto announce?
This afternoon the mining giant announced that it has found a replacement for outgoing chief executive, J-S Jacques.
According to the release, the company has appointed its Executive Director and Chief Financial Officer, Jakob Stausholm, as its new leader. He will commence in the role on 1 January 2021.
The company notes that since joining Rio Tinto in 2018, Mr Stausholm has played a leading role in its strong performance. He has maintained strong capital allocation discipline and delivered significant shareholder returns, while at the same time strengthening its balance sheet.
The new chief executive is very experienced. He has 25 years in leadership roles in capital intensive and service industries across Europe, Latin America, and Asia-Pacific. Prior to joining Rio Tinto, Mr Stausholm was the Chief Financial Officer and Strategy & Transformation Officer of A.P. Moeller – Maersk A/S.
"Ideal qualities for our next chief executive."
Rio Tinto's Chairman, Simon Thompson, believes Mr Stausholm is a perfect fit for the role.
He commented: "I am pleased to announce the appointment of Jakob as Chief Executive of Rio Tinto. His blend of strategic and commercial expertise, strong values and a collaborative leadership style are the ideal qualities for our next chief executive."
"Jakob has already made a significant contribution to the performance of the Group in his role as Chief Financial Officer. He has a proven track record as a senior executive with deep industrial and resources experience spanning strategy development and technology, as well as financial and risk management. He has also demonstrated the ability to build effective relationships and has a strong personal commitment to the role of business in promoting sustainable development," he added.
Rio Tinto's incoming Chief Executive is certainly ready for the challenge of leading one of the world's largest miners.
Jakob Stausholm commented: "I am truly delighted and humbled to be given the opportunity to lead this tremendous company. Since I joined two years ago, I have spent extensive time at our operations, meeting our excellent people and have also engaged with many of our valued partners."
"Rio Tinto's purpose is to produce the materials essential to human progress and I remain deeply committed to this after the difficult times we have faced during 2020. I look forward to leading Rio Tinto and working with my colleagues across the business to ensure that we maintain strong safety, operational and financial performance, while progressing our growth, sustainability and technology strategies," he added.
The new chief executive also touched on the need to improve relations with Traditional Owners after the Juukan Gorge scandal which ultimately cost J-S Jacques his job.
He said: "I am also acutely aware of the need to restore trust with Traditional Owners and our other stakeholders, which I view as a key priority for the company."
What now?
With Mr Stausholm moving to the top job, Peter Cunningham will be appointed interim Chief Financial Officer from 1 January. He was previously Group Controller for Rio Tinto and has held a number of senior finance and leadership roles across the company over the last 27 years.
Outgoing Chief Executive, J-S Jacques, will step down from his role from 1 January 2021 and then leave the company on 31 March 2021.
