The Rio Tinto Ltd (ASX: RIO) share price is falling on Friday morning.
At the time of writing, the mining giant's shares are down 1.5% to $116.88.
Image source: Getty Images
Why is the Rio Tinto share price falling?
Investors have been heading to the exits today after the miner announced the surprise exit of its chief executive, Jakob Stausholm.
According to the release, Stausholm will step down from the role later this year, at the conclusion of a succession process.
He joined Rio Tinto back in 2018 as executive director and chief financial officer. Stausholm then became chief executive in January 2021, which means he has been at the helm for almost four and a half years.
The company notes that as chief executive, the outgoing chief executive has reset Rio Tinto's strategy to align it to the opportunities of the energy transition. He has also shaped a pathway to a decade of profitable growth.
Commenting on his exit, Stausholm said:
It has been an absolute privilege to lead Rio Tinto, one of the great mining and materials companies in the world. I would like to thank the deeply dedicated and talented people across the organisation that together have raised both operational performance and project execution.
We have built on Rio Tinto's historic strengths to deliver profitable, stable growth and significant shareholder value. I know the company will continue to thrive long into the future.
What's next?
The release reveals that Stausholm will continue to lead Rio Tinto as chief executive and a member of the board of directors while a successor is appointed. A "rigorous selection process" is already underway and is being led by the Nominations Committee.
Commenting on the change of leadership, Rio Tinto's chair, Dominic Barton, said:
Under Jakob's leadership, Rio Tinto has restored trust with key stakeholders, aligned our portfolio with the commodities where demand growth is strongest, built a diverse and talented management team, and set a compelling growth trajectory. Our focus on these things is undiminished and our strategic priorities are unchanged.
This is a natural moment to appoint Jakob's successor, as we look ahead to our next phase in which we will double down to deliver greater operational performance to realise the full potential of our assets. I would like to thank Jakob for his significant contribution to Rio Tinto at a critical time in its evolution.
The Rio Tinto share price is down 12% over the past 12 months.
