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Investing.com-- Rio Tinto ’s (ASX:RIO) (LON:RIO) board and CEO Jakob Stausholm agreed to part ways last week following growing tensions over cost control and strategic alignment, Reuters reported on Wednesday, citing multiple sources familiar with the matter.
The abrupt exit, announced without explanation, surprised investors given Stausholm’s recent public appearances and lack of visible warning signs, the report said.
Reuters, citing six people briefed on internal discussions, reported that the board had grown frustrated with Stausholm’s resistance to cost-cutting directives, despite supporting his strategic bets on lithium and copper.
Stausholm, who took over in 2021 amid a reputational crisis, is credited with restoring global partnerships and steering the miner through major growth projects. However, the report said his rejection of a potential merger with Glencore PLC (LON:GLEN) and reluctance to reassess Rio’s dual listing or Chinalco stake triggered deeper concerns.
Rio’s workforce has surged 22% to 60,000 since 2021, while revenue fell by over $10 billion. Stausholm was reportedly reluctant to shift focus away from growth, even as CFO Peter Cunningham and major investors flagged rising overheads, Reuters reported.
Internal candidates, including iron ore chief Simon Trott, CCO Bold Baatar, and aluminum head Jerome Pecresse, are in contention to succeed Stausholm, according to the report.
Pecresse is favored by some board members for his sharper cost discipline, the report added.
Sydney-listed Rio shares ended 1% lower on Wednesday.