Anglo American has withdrawn an executive incentive plan resolution just one day before shareholders vote on the acquisition of Teck Resources (TECK.US). Last month, the company's remuneration committee proposed linking long-term incentive bonuses for 2024 and 2025 to the success of the Teck acquisition. The original plan tied payouts to shareholder returns, cash flow, capital returns, and environmental, social, and governance (ESG) performance, with at least 62.5% of incentives vesting immediately upon deal completion.

On Monday, Anglo American stated it decided to withdraw the resolution following objections from some shareholders, emphasizing that the deal's progress does not depend on approval of this measure. Shareholders of both Anglo American and Teck Resources will vote separately at special meetings in London and Vancouver on Tuesday.

If approved, the merger will create a multinational metals producer with a market value exceeding $50 billion, spanning copper, iron ore, and other metals. Notably, Institutional Shareholder Services Inc. (ISS) had recommended supporting the acquisition last month but opposed tying executive incentives to the deal's outcome, calling it "non-compliant with UK market practices." Legal & General also criticized the incentive adjustment, citing conflicts with its compensation policy principles, though it still plans to vote in favor of the transaction.

The merged entity will be headquartered in Canada while maintaining Anglo American's primary listing in London, with core operations focused on copper assets in Chile and Peru.