Xstrata shareholders scrap pay plan, Glencore deal goes through

Tue Nov 20, 2012 10:23am EST
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LONDON (Reuters) - Shareholders in Xstrata XTA.L dealt a blow to their board on Tuesday, ushering through a long-awaited $31 billion takeover by trader Glencore (GLEN.L: Quote) without a controversial pay plan that had been backed by the miner's directors.

In a final vote after a drawn out meeting and a complex shareholder poll, 78.4 percent of voting shareholders voted against the "golden handcuffs" plan for Xstrata managers.

That vote means an earlier resolution, in which Xstrata shareholders approved the Glencore takeover without the retention plan, is valid, and the deal goes through.

(Reporting by Clara Ferreira-Marques; Editing by Keith Weir)

Xstrata Chairman John Bond (3rdL) and Chief Financial Officer Trevor Reid (2ndL) are accompanied by unidentified staff members as they arrive before an extraordinary shareholder meeting in the Swiss town of Zug November 20, 2012. REUTERS/Arnd Wiegmann