Free Jim Bob

6 October 2015 By Kevin Allison

Jim Bob Moffett’s energy group is bowing to pressure from activist Carl Icahn. It’s ditching board seats and a controversial management structure and may hive off the oil and gas unit it bought in a bad 2012 deal. Like Chesapeake, though, more fundamental changes may be needed.

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Freeport-McMoRan announced on Oct. 6 that it has reduced the number of people on its board to nine from 16 and is mulling strategic alternatives for its oil and gas business. The moves comes a little more than a month after activist investor Carl Icahn revealed an 8.5 percent stake in the copper, gold and oil producer and criticized its capital spending, capital structure, costs and executive compensation.

Freeport had announced earlier in the year that it was considering listing a minority stake in its oil and gas unit. Other options under review now include a spinoff of the business to shareholders, a joint venture and more cost cuts.

The board is also scrapping an unconventional Office of the Chairman management structure. The office comprised James Moffett, Chief Executive Richard Adkerson and head of Freeport-McMoRan Oil & Gas James Flores.

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