Executive Bonuses Rise At Rio Tinto's Aluminum Business

LONDON -(Dow Jones)- Anglo-Australian miner Rio Tinto PLC (RTP: 222.63, -2.27, -1.01%) paid out $7.72 million in bonuses to chief executives at its aluminum subsidiary last year, the company said Monday.

Dick Evans, who retired as Rio Tinto Alcan's CEO last year, earned $7.41 million, compared with $3.26 million a year earlier, according to the company's annual report. The figure included a $5.39 million bonus.

"This reflects the exceptional synergy savings generated over the past two years, the strong progress in developing and appointing a successor and the organizational and cultural integration of Rio Tinto Alcan into the wider group," Rio Tinto said.

Evans' successor, Jacynthe Cote, earned $3.07 million last year, including a $2.23 million bonus.

Rio bought Canada's Alcan in October 2007, saddling it with $40 billion in debt just ahead of a collapse in commodity prices. The aluminum division returned to profitability in the second half of last year, although it was forced to book a $200 million write-down.

Rio Tinto said it expects more than $1.1 billion a year in efficiency savings once the two companies are fully integrated.

Heavy bonuses for Rio Tinto Alcan's chief executives pushed their earnings higher than those of the parent company's CEO.

Short-term benefits paid to Rio Tinto Chief Executive Tom Albanese increased to $2.7 million from $2 million.

The figures don't include long-term benefits, such as share awards.