New BHP chief's $700,000 move

New BHP Billiton chief Andrew Mackenzie may have taken a substantial pay cut, but the company spared no expense to help him relocate from London to Melbourne.

The miner's annual report shows that Mr. Mackenzie received a $700,000 relocation allowance as part of his $13.6 million pay packet.

Related: New BHP chief flags costs, productivity agenda

Although it may sound like a massive chunk of change, the sum was taxed 46.5 per cent. A large portion of what remained paid off stamp duty on a converted warehouse in Richmond, where Mr. Mackenzie lives with his family.

His predecessor Marius Kloppers officially leaves BHP Billiton next week, having earned over $17 million in his last year with the company. Mr. Kloppers could earn another $18 million in long-term bonuses.

Related: Australia's highest-paid CEOs

Mr. Mackenzie is unlikely to match his predecessor's earnings, as he and the rest of the twelve-member group management committee are all taking 25 per cent pay cuts compared to what top managers received in the boom years.

Mr. Mackenzie takes home an annual salary of US$1.7 million, plus 25 per cent in superannuation, short term incentives worth up to US$1.4 million and long term bonuses worth up to US$6.8 million.

However, the report makes it clear that his actual pay will depend heavily on business outcomes and shareholder returns, with 72 per cent of the packet dependent on performance.

BHP, which saw a 30 per cent drop in profits, warned yesterday that it expected pain from falling commodity prices to continue.