Lonmin under fire for giving retired director £500,000 bonus

Lonmin, the platinum metals mining company, is expected to come under fire from shareholders this week over its decision to award a retired director a £500,000 bonus.

The payment has angered the Association of British Insurers, whose members account for more than 20 per cent of investments on the London Stock Exchange.

The association has issued a ‘red top’ alert on Lonmin to reflect what it regards as a serious breach of corporate governance best practice.

The London company made the discretionary payment to Sam Jonah, the prominent African businessman who retired in April. He had served as a director for 12 years, including several as an executive director.

Although Jonah’s payment, contained in Lonmin’s 2004 annual report, has already been made, shareholders will be asked to approve the report and financial accounts at the miner’s annual meeting on Thursday.

 

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