Rio Tinto's (NYSE, LSE, ASX: RIO) departing CEO Jakob Stausholm says he hasn't fallen out with chairman Dominic Barton despite Reuters citing unnamed company officials to the contrary.
Management and board remained "absolutely aligned" on the company's values, strategy and performance assessment, Stausholm said Friday, according to Australian media. His successor could "very well be" an internal candidate, he said in his first public remarks since the announcement of his departure two weeks ago.
A week later, Reuters reported the board had concerns the CEO wasn't focused on costs after years of expansion. The news agency cited 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.
Shares in Rio Tinto closed 0.4% lower on Friday at A$109.60 apiece for a market capitalization of A$154 billion.
Stausholm spoke at the official opening of Rio's Western Range iron ore joint venture with China's Baowu in the Pilbara region. He joined Rio in 2018 and became CEO in 2021 after the company's controversial destruction of 46,000-year-old Aboriginal rock shelters. The incident prompted the resignation of then-boss Jean-S?bastien Jacques following investor and Indigenous backlash.
As CEO, Stausholm pushed Rio beyond its traditional Pilbara iron ore base. He secured approvals for the long-delayed Simandou iron ore project in Guinea, expected to begin production later this year. Under his leadership, Rio also acquired Arcadium for $6.7 billion and launched a $900-million lithium joint venture with Chilean state-owned Codelco.
But while Rio's workforce has grown by 22% to roughly 60,000 employees since his appointment, annual revenue has declined by nearly US$10 billion. Iron ore prices, for years Rio's key profit driver, are projected to fall further, prompting the board to demand greater focus on cost discipline and operational efficiency.