Out of the box

16 June 2017 By Pete Sweeney Follow @petesweeneypro

The Anglo-Australian mining giant named Ken MacKenzie as its new chairman. The former manufacturing executive lopped heads and boosted returns at his last job, and was unsentimental about weak business lines. Activist investor Elliott is pleased. Other shareholders should be too.

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Mining giant BHP on June 16 named Australian packaging executive Ken MacKenzie as its next chairman.

Canadian-born MacKenzie won plaudits for his aggressive turnaround of Amcor, which saw him replace 75 percent of the firm's top 80 managers in the first two years of his tenure. He nearly doubled the company's return on capital and boosted its share price 80 percent over ten years.

MacKenzie, 53, will succeed Jac Nasser on Sept. 1.

U.S.-based activist hedge fund Elliott, which has been lobbying for change at BHP, said MacKenzie’s appointment was "a constructive step in bringing much needed change to the direction of BHP".

BHP’s Australian shares were little changed by early afternoon in Sydney, down 0.3 percent to A$22.94.

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