Orica has tapped interim managing director and chief executive Alberto Calderon to take up the role permanently, following a global search for alternative candidates.
He will take up the role immediately on a rolling contract with no fixed term and will receive a fixed salary of $1.8 million.
Mr Calderon was named to replace Ian Smith as chief executive officer of the explosive maker in an interim capacity in March, after Mr Smith’s abrupt departure, due in large part to his aggressive management style.
Orica’s shares closed down 0.99 per cent at $20.95 at the 4.15pm (AEST) official market close, while the benchmark index declined 0.77 per cent.
Orica chairman Russell Caplan said the board was pleased to be able to appoint Mr Calderon, after an “extensive and rigorous global search.”
“Alberto is a world class executive with broad leadership experience across large, global, complex organisations in the resources sector,” he said.
“He has a deep understanding of our business and customers that ensures he is the natural fit to lead the continued implementation of Orica’s strategy.”
Mr Calderon’s total remuneration has a higher proportion at risk, subject to him meeting short term and long term performance criteria, to ensure his remuneration aligns with total shareholder value creation, Orica said.
Mr Calderon said he was honoured to be given the opportunity to lead Orica.
“During my time as interim CEO I have been privileged to be able to spend more time with our people, investors and customers, listening to their views,” he said.
“My focus will be on ensuring the execution of Orica’s strategy as we continue on the path to being a simpler, more flexible and efficient company, and a partner of choice for our customers globally.”
In a pointed reference to his predecessor, Mr Calderon said he wanted to “ensure a culture of respect, collaboration and performance” within the company.
Mr Calderon has been a non-executive director of Orica since August 2013. His most recent executive role prior to Orica was as the head of BHP Billiton’s aluminium, nickel and corporate development divisions.