Rio Tinto 'split with CEO over differences'

Stausholm reluctant to prioritise cost cuts

- CLARA DENINA ERNEST SCHEYDER MELANIE BURTON

Rio Tinto's board and Jakob Stausholm agreed to part ways last week amid mounting concerns the CEO was reluctant to follow board priorities, including focusing on costs, after years of expansions in lithium, copper and iron ore, three sources said.

Rio, the world’s second-largest listed mining company, surprised investors last week by announcing Mr Stausholm would step down later this year when a successor is appointed.

No reason for Mr Stausholm’s exit was given, and sources said it was not tied to any scandal. The CEO had as recently as two weeks ago given no indication of his departure at a major industry conference in Spain, according to three sources who attended.

Reuters spoke with six people who were familiar with board considerations, or who had been briefed on them, or briefed by management. They agreed to speak on condition of anonymity to discuss sensitive internal matters or private conversations.

Rio Tinto declined to comment for this story, while Mr Stausholm did not respond to requests for comment.

Mr Stausholm took the helm at Rio in 2021 at a low point in the company’s history after his predecessor was sacked. The Dane started his tenure with a listening tour of the company’s global portfolio, which stretches across every continent but Antarctica.