Five questions answered on Cynthia Carroll

CEO steps down.

 

 

Cynthia Carroll today announced she would step down from mining giant Anglo American. We answer five questions on Carroll’s resignation.

Why has Carroll stepped down at this time?

 

Carroll’s official line is that she felt ‘the time was right’. 

 

However, it is believed Carroll has stepped down because of mounting pressure from shareholders who are said to have lost confidence in her strategy and leadership after a sharp drop in profits. 

 

On July 27 Anglo announced that first-half earnings had fallen 46pc to $3.7bn (£2.4bn) which triggered a fall of 3.6pc in the share price.

 

Shareholders are believed to have made the unusual move of going over the head of the chairman of Anglo, Sir John Parker, who had previously rebuffed their concerns, and contacted David Challen, the company's senior independent director, to demand the chairman be overruled and a new Chief Executive found.

 

What has Carroll said? 

 

"I am extremely proud of everything we have achieved during my period as chief executive and I will always retain enormous admiration and affection for this great company and its outstanding people," she said. 

"It is a very difficult decision to leave, but next year I will be entering my seventh year as chief executive and I feel that the time will be right to hand over to a successor who can build further on the strong foundations we have created."

 

What has Anglo said? 

 

"Cynthia's leadership has had a transformational impact on Anglo American. She developed a clear strategy, based on a highly attractive range of core commodities, and created a strong and unified culture and a streamlined organisation with a focus on operational performance."

 

"Her legacy will include, among many other things, a step change improvement in safety, sustainability and the quality of our dialogue with governments, communities and other stakeholders," he added.

 

When will Carroll leave her post? 

 

When a successor has been appointed and a handover has taken place. 

 

What does this mean for the border spectrum of business? 

 

That there are only two women left in charge of Britain’s biggest companies; these are Angela Ahrendts at Burberry and Alison Cooper of Imperial Tobacco. Anglo will now also be looking for a Chief Executive to replace Carroll.

Anglo American is under pressure from shareholders. Photograph: Getty Images.

Heidi Vella is a features writer for Nridigital.com

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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