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Highlights

  • CEO Jakob Stausholm to step down later this year after over four years at the helm.

  • Rio Tinto shares drop 1.5% to $116.88 following leadership announcement.

  • Succession process underway with company’s strategic direction remaining unchanged.

Shares of mining heavyweight Rio Tinto Ltd (ASX:RIO) fell in early Friday trading, dropping 1.5% to $116.88, after the company announced the impending departure of Chief Executive Officer Jakob Stausholm.

The news took investors by surprise, as Stausholm, who has led the global miner since January 2021, revealed plans to step down later this year following the conclusion of a formal succession process currently underway.

Stausholm originally joined Rio Tinto in 2018 as Chief Financial Officer before ascending to the CEO role. During his tenure, he has been credited with realigning the company's strategic focus towards opportunities in the global energy transition, improving operational performance, and strengthening stakeholder relationships. The company describes his leadership as instrumental in establishing a decade-long roadmap for profitable growth.

In a statement, Stausholm expressed pride in his time at the helm, saying, “It has been an absolute privilege to lead Rio Tinto... We have built on Rio Tinto's historic strengths to deliver profitable, stable growth and significant shareholder value.”

Until a new CEO is appointed, Stausholm will continue in his role and remain a member of the board. Rio Tinto Chair Dominic Barton confirmed that the Nominations Committee is leading a “rigorous selection process” to identify the next chief executive. Barton praised Stausholm’s contributions, stating:

“Under Jakob's leadership, Rio Tinto has restored trust with key stakeholders... and set a compelling growth trajectory. This is a natural moment to appoint Jakob's successor as we look ahead to our next phase.”

The board emphasised that Rio Tinto’s strategic direction remains unchanged, with a continued focus on operational efficiency and unlocking long-term asset value.