Rio Tinto Alcan chief executive's remuneration increases 10 per cent to $5 million

Rio Tinto Alcan chief executive Jacynthe Cote saw her total remuneration increase by more than 10 per cent last year to about $5 million.

The head of the mining giant's Montreal-based aluminum division earned US$3.38 million last year, up 21.4 per cent from US$2.79 million in 2009.

That includes US$825,000 in base pay, US$1.27 million in short-term incentives in cash and deferred shares, and US$1.3 million in long-term incentives, said Rio Tinto's annual report.

Cote's base pay will increase to US$885,000 in 2011.

In addition, she earned nearly C$2.1 million in other payments for items such as pension, health care, expatriate payments, car allowances and other contractual payments.

The other payments were down from C$2.2 million in 2009.

The 53-year-old Quebecer's short-term bonus was based on her ability to provide effective leadership, drive "further sustainable cost reduction," continue to sell selected assets and progress in key growth projects, said the report.

Rio Tinto CEO Tom Albanese saw his remuneration increase by 31.4 per cent to 5.5 million British pounds, as his short-term bonus increased to 1.6 million from 589,000 pounds.

The American oversaw a nearly three-fold increase in the 2010 net profit of the Anglo-Australian miner, which is the second-biggest producer of iron ore after Brazil's Vale.

Rio Tinto's profit increased to US$14.32 billion last year on the back of soaring commodity prices and increased iron ore output.

Rio's aluminum group also turned around a loss by earning US$773 million as prices rose by 31 per cent.

Rio Tinto plans to invest billions of dollars to modernize key Canadian facilities in Saguenay, Que., and Kitimat, B.C. The moves will increase production by using new technology to reduce hydro energy consumption.