Glencore’s (LON:GLEN) chief executive has told investors that he plans to retire in three to five years, Bloomberg has reported. Ivan Glasenberg, who turns 62 in January, reportedly believes that the next leader should come from a younger generation.
Glencore’s share price has advanced in today’s session, having gained 0.88 percent to 311.06p as of 14:42 BST. The stock is outperforming the benchmark FTSE 100 index which currently stands 0.42 percent higher at 7,079.43 points. The group’s shares have lost more than 17 percent of their value over the past year, as compared with a near six-percent dip in the Footsie.
Glencore boss planning to retire
Sources with knowledge of the matter told Bloomberg that Glencore CEO Ivan Glasenberg had discussed his succession plan in recent meetings, unveiling that he was planning to retire in three to five years. He has is said to have started training three to four front runners as the commodities giant’s next chief executive officer. The people further noted that Glasenberg, who turns 62 in January, believes that the next leader should come from a younger generation.
Glasenberg started his career at Glencore more than three decades ago, and has held the top job since 2002.
Bloomberg further noted that some industry observers saw his comments as intended to placate investors concerned about the lack of obvious succession planning.
“I can see a Glencore without Ivan, but I don’t expect that within a four-year time frame,” Ben Davis, an analyst at Liberum Capital Markets, told the newswire.
Analysts on commodities giant
Jefferies, which rates Glencore as a ‘buy,’ lowered its price target on the shares from 450p to 440p last week, while Deutsche Bank reaffirmed the group as a ‘buy,’ without specifying a valuation on the stock. According to MarketBeat, the FTSE 100 group currently has a consensus ‘buy’ rating and an average price target of 403.20p.
Glencore is scheduled to post its third-quarter production report on Friday.