Jac Nasser shows how to handle executive change

BHP Billiton chair Jac Nasser had myriad options but chose Andrew MacKenzie, and it appears a wise choice.

BHP Billiton chair Jac Nasser had myriad options but chose Andrew MacKenzie as his new chief executive because of the Scottish executive’s broad experience spanning both oil and gas and minerals , upstream and downstream, as well as his leadership qualities.

The move was expected but the timing was not, given that most companies prefer to separate results announcements from leadership issues, unless of course they want to play down the numbers.

Marius Kloppers is a class act and handled his departure was great dignity, right down to his comment at last year’s annual press dinner noting that lame duck was on the menu.

But his reign at BHP was decidedly mixed, with a string of failed deals from the Rio takeover bid that hit a brick wall with European anti-trust authorities and the Canadian potash deal among others.

Ironically, not long after the Rio bid was announced he snared a prized recruit named Andrew Mackenzie, who joined to the dismay of his Rio colleagues but to BHP’s delight.

Today he was anointed the new boss and becomes the most powerful man in global mining.

Nasser has handled the change well, as evidenced by the selection of an internal candidate.

After six years the change is welcome one that will give BHP a fresh start from a superb platform.

Given the press coverage to Kloppers’ infamous clean desk policy, Mackenzie’s tolerance to family photos will be an issue.

But the more serious questions start with his expansion plans and whether he will take BHP further into oil and gas.

One of Kloppers legacies will be to move resource trading from the back rooms to the dealing room, with more transparent market based pricing for iron ore .