BHP Billiton urged to line up new chairman

Mining giant BHP Billiton is expected to dust down its succession strategy for legendary chairman Don Argus after questions were raised about whether he should stay on following the collapse of the company's bid for Rio Tinto. Mr Argus was always tipped to leave after the world's largest bid battle was resolved, and BHP's sudden withdrawal of its Rio offer last week has now focused the spotlight on the chairman's intentions. Last week some shareholders raised questions about whether Mr Argus should go, and there were reports that one director of the Anglo-Australian company wanted the succession issue addressed. Already, names of possible replacements are being talked about, including non-executive directors, David Morgan, Paul Anderson, John Schubert, and Jacques - Jac The Knife - Nasser, former chief executive of Ford motor company. One source said that it was "almost inevitable" that a successor would come from within the company. Mr Argus, 70, a former chief executive of National Australia Bank, became a BHP director in 1996 and chairman in 1999. In an industry known for its "big beasts" Mr Argus is among the mining jungle's largest animals and is credited with steering BHP away from the abyss after a string of problem acquisitions and investments in the 1990s, notably the A$3.2bn purchase of Magma Copper in 1996. But at BHP's annual meeting in Australia on Thursday several investors said that Mr Argus's time was up, with one shareholder reportedly telling the board: "Don Argus is past his use-by date....I would personally like to see him go." Mr Argus has acknowledged that his tenure at the world's largest mining company "remains under review" by the board. But following the failure of the Rio bid, and with the price of commodities in free fall, BHP may not want to destabilise the company further with a boardroom battle. At the agm, Mr Argus was re-elected for another year, though this would not preclude him leaving earlier. However, non-executive John Buchanan told the agm: "The board is not going to speculate about the length of time any one member has left. What I can say is the company is aware that future plans need to be made. In the same way we concentrate on succession planning for executives, succession planning for board members is also in place." But another director, who asked not to be named, reportedly told the media in Australia that it was "imperative to ask what processes" were in place should Mr Argus decide to go. Among the potential successors analysts think it could be a straight fight between Mr Nasser and Mr Morgan. Mr Nasser, who ran Ford from 1998 to 2001, is considered to be Mr Argus' favoured choice and therefore has a powerful ally. Meanwhile, Mr Morgan has been on the BHP board since January only, and has escaped some of the critical fall-out from the collapse of the year-long Rio bid. Source: Telegraph