Anglo American has withdrawn a proposed £8.5 million bonus plan tied to the completion of its £40 billion merger with Canadian mining company Teck Resources following strong opposition from shareholders. The FTSE 100 company said it made the decision after extensive consultations with investors, who expressed significant concerns about the proposed payouts.

The merger, initially announced in September as a "merger of equals," aims to create the world’s fifth-largest copper mining group. Under the original terms, Anglo intended to modify its 2024 and 2025 bonus structures to guarantee substantial share awards to CEO Duncan Wanblad, 58, and other senior executives contingent on the successful completion of the deal.

However, shareholder pushback was considerable, with many investors signaling they would vote against the bonus amendments at Anglo’s annual general meeting held on June 30. The company responded by scrapping the proposed executive incentive changes ahead of the vote and committed to further discussions regarding executive compensation in preparation for the 2026 annual general meeting.

Analysts from investment bank Peel Hunt indicated that removing the controversial bonus resolution could bolster shareholder support for the merger itself. Anglo’s management emphasized that they have “reflected carefully on shareholders’ concerns” and reiterated their intention to maintain open dialogue on pay matters.

The planned combination of Anglo American and Teck Resources represents a major consolidation in the copper mining sector, with both companies highlighting the strategic benefits of the merger. Nonetheless, the resistance to the executive bonus scheme underscores the scrutiny that shareholders are applying to remuneration practices amid large-scale corporate transactions.