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Rio Tinto not meeting diversity targets, investor says ahead of chairman vote

Published 04/11/2017, 08:59 AM
© Reuters.  Rio Tinto not meeting diversity targets, investor says ahead of chairman vote
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  • Hermes Investment Management says it will vote against the re-election of Jan du Plessis as chairman of Rio Tinto (NYSE:RIO) because of the company’s policy on boardroom diversity.
  • Rio has two women on its board but Hermes believes the company has not been convincing enough about its plans to broaden the gender composition of its boardroom.
  • Hermes, which represent ~0.5% of Rio’s London shares, said it wrote to the chairs of the U.K.’s largest companies warning them it would be concerned if they had fewer than 25% of women on their boards and lacked a credible plan to raise it to the government’s target of 33% by 2020.
  • Du Plessis is due to retire soon from the company, so the Hermes vote is only a symbolic gesture.


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