Elizabeth Gaines appointed as Fortescue director in latest shuffle
Andrew Forrest has brought back former Fortescue boss Elizabeth Gaines just three months after her replacement took office – and her paycheck is enviable.
Andrew Forrest has brought back former Fortescue Metals Group boss Elizabeth Gaines back as an executive director only three months after her replacement as the iron ore giant’s chief executive took office.
Fortescue said on Friday Ms Gaines – also the company’s former chief financial officer – would return to a part-time executive position at the iron ore and would-be energy giant, after spending a brief period in a non-executive director role as the company’s “global brand ambassador”.
The move comes after Fortescue appointed little-known US executive Christine Morris, previously the finance boss of Maersk Drilling, as the company’s chief financial officer.
Ms Gaines’ surprise return is the latest move in a turbulent few years for the company, which has changed out almost all of its senior executive ranks since Dr Forrest launched his campaign to turn the iron ore miner into a global energy giant.
Ms Gaines resigned as the company’s chief executive officer in December 2021 but stepped down as its boss in August last year, making way for Dr Forrest’s brief return as the company’s most senior leader before the appointment of former top Woodside executive Fiona Hick as the leader of its iron ore arm.
Fortescue said on Friday Ms Gaines global ambassador role had consumed “significantly more time and commitment than was originally anticipated”.
“To recognise and secure Ms Gaines’ commitment to Fortescue, consistent with good corporate governance, Ms Gaines will remain on the Board as a Director and will transition into a part-time executive director role reporting directly to the executive chairman,” the company said.
Ms Gaines will be paid $1.3m a year, including director fees, in her new role, but will not be eligible to participate in Fortescue’s short or long term executive bonus plans.
Her duties as the company’s global ambassador will be “as directed by the Fortescue executive chairman, including to promote the strategic business objectives of the roup globally with governments, the finance industry and industry generally.”
“Actual hours and times worked will be as reasonably required by Fortescue to meet its business needs,” the company said.
The iron ore major is still to disclose details of Ms Gaines’ termination payout after she ceased work as its chief executive in 2022.
It has also not put a figure on the salaries paid to Fiona Hick, who took the role as the chief executive of Fortescue’s mining business in February, or that of Fortescue Future Industries boss Mark Hutchinson.
Those figures are expected to be included in Fortescue’s annual financial statements to be released later this year, and all three now report directly to Dr Forrest as Fortescue’s executive chairman.
Ms Gaines’ return as a Fortescue executive appointment coincides with the resignation of non-executive director Jennifer Morris, who also served as the chair of the Fortescue board’s remuneration committee. Ms Morris has served on the company’s board since November 2016.
Fortescue non-executive director Penny Bingham-Hall will replace Ms Morris as chair of the company’s remuneration and people committee, the company said on Friday.
Her resignation, which will take effect at the end of the financial year, leaves Fortescue with seven directors, of which five are independent non-executives, led by deputy chairman Mark Barnaba.
Ms Morris’ departure is the latest in a slew of Fortescue exits in recent months which have included former chief financial officer Ian Wells, Guy Debelle, previously CFO of the miner’s green energy arm Fortescue Future Industries, and Linda O’Farrell, who was Fortescue’s director of people
Fortescue shares closed up 29c, or 1.4 per cent, to $20.79 on Friday.
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