Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 226

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 226
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PSA) concluded in December 2024 and awards will vest on 20 February 2025. As well as reviewing the formulaic outcome, the Committee also considered the vesting outcome in the context of underlying business performance and the consequence management framework and felt it reflected the shareholder experience. Rio Tinto delivered a strong Total Shareholder Return (TSR) of 80% over the performance period. While this was sufficient to trigger vesting under the element measuring performance relative to our mining peers, the result was marginally behind the performance of the MSCI World Index (TSR: 81%), and subsequently this element lapsed in full. The overall formulaic vesting outcome for the 2020 PSA was 12.75% of maximum. The Committee recognises that Rio Tinto has delivered strong returns for shareholders over the past 5 years, and that the TSR performance of a handful of very large technology companies, especially in the last 12 months, had a material impact on the performance of the MSCI World Index. The Committee however approved the formulaic outcome and no discretion was exercised. 2025 remuneration decisions As we explained to investors as part of establishing our Policy, the main policy changes focused on the structure of pay, resulting in an increase in our LTIP award levels to be more aligned with peers in the market. We undertook extensive benchmarking during 2024 to assess overall competitiveness and pay positioning relative to our peers and those we compete with for talent. This review confirmed prior analysis that salaries and target remuneration remained below median market levels for certain critical positions. Therefore, a targeted salary adjustment has been approved for the Chief Executive, to better reflect the talent market and most importantly ensure pay levels remain more aligned with the size of the role. Since his appointment in January 2021, the Chief Executive has demonstrated exceptional leadership. He has led significant improvements in restoring trust with the local communities in which we operate while delivering shareholder returns of $38 billion through dividends and buybacks. Under his leadership, Rio Tinto has progressed several critical projects to sustain, diversify and build on the returns already delivered. The Chief Executive’s current salary is positioned at the lower end of FTSE 10 peer companies. Considering his development as an established FTSE 10 Chief Executive and proven performance since his appointment, we have reset his salary to £1,410,700. This represents an increase which is at a premium of 6.8% to the 3% general increase applied to the UK workforce in