Anglo American has abandoned a proposed £8.5 million merger bonus for its chief executive, Duncan Wanblad, following pushback from shareholders. The decision came ahead of a scheduled vote on the company’s planned £40 billion merger with Canadian mining firm Teck Resources.

The FTSE 100 miner said it had engaged extensively with shareholders who expressed concerns about the size and structure of the proposed payout. In response, Anglo American chose to withdraw the bonus scheme tied to the merger completion. Analysts at Peel Hunt suggested that removing the contentious resolution is likely to improve shareholder support for the merger proposal.

The two companies announced their intention to merge in September, describing the transaction as a “merger of equals.” The deal is expected to create the world’s fifth-largest copper mining company. As part of the merger arrangement, Anglo had sought to amend the terms of its 2024 and 2025 bonus plans to guarantee substantial share awards not only for Wanblad, 58, but also for other executives.

However, shareholders opposed the changes, indicating they would vote against the amended bonus schemes at the meeting. In light of this, Anglo American said it will continue consulting with shareholders about executive remuneration, with further discussions planned ahead of the 2026 annual general meeting.

The outcome highlights the growing influence of investor scrutiny over executive pay packages, especially in significant corporate transactions. The revised approach may facilitate smoother approval of the merger, which aims to combine the two companies’ assets and operations in the mining sector.