It's Glencore, Not Glencore Xstrata

PUBLISHED: May 20 2014 @ 13:50 | Comments (0) | More info about Lou Gutheil

The biggest financial news of the day, for me at least, is that the new company, formerly known as Glencore Xstrata (LSE:GLEN), and known before that as two companies, i.e., Glencore and Xtrata, shall now henceforth officially be called Glencore. Its EPIC ID will still be GLEN. The impact of the announcement at the company’s AGM was so minor (no pun intended) that the Glencore share price suffered a yawn of 0.03%, sliding slightly by 1.10 pence to 327.50. Normally, we like to report news that is a tad more earthshaking. However, I feel personally involved in this change, it’s just past 2:00 pm on the US east coast, and my boss has more than likely left work and is relaxing in a pub somewhere. So, what have I got to lose?

Why do I feel so personally involved? I’m glad you asked. There are essentially three reasons.

Reason Number One: I Like Tony Hayward

Mr. Hayward was just recently named as the Chairman of Glencore Xstrata. Technically he is now the chairman of Glencore, but his appointment came on 08 May when the company was still Glencore Xstrata. I believe that Mr. Hayward is not only a brilliant man, but also a man of great integrity. I admire him for his perseverance in the wake of the blame that was put on his shoulders following the Deepwater Horizon disaster.

He was demonized and took a verbal beating, not so much for the spill, but for an ill-worded apology. Obviously, he was in no way responsible for the tragic accident. I still recall watching his faux pas live. I felt his compassion, his sense of helplessness and his determination to make things right. He was crucified by the politically correct, bleeding heart environmentalists and media for something he had not done, could not have prevented, and passionately wanted to heal.

Finally, I admire him, as I have said in this column previously, for the kind of quiet fortitude that is the foundation of his return to prominence in yet another major company.

Tony Hayward would be the compelling reason for me to invest in Glencore.

Reason Number Two: I Despise Politicians Who Haven’t Got a Clue

There are a lot of them – politics seems to attract that crowd – but I am thinking of one in particular. It’s probably unfair to name names, so I’ll just mention his initials: Vince Cable. My grandfather, who hailed from south of London (I can’t recall where, exactly. I wasn’t there when he was born.), would have called Mr. Cable a nincompoop. I have no idea what that means, but there is a picture of Vince Cable next to the word in the dictionary.

The burr under Cable’s saddle is that there is not a woman on Glencore’s board. Neither was there one on the Glencore Xstrata board. Pardon me for being just a bit dumbfounded, but what does having a woman on the board have to do with running a company well? You don’t put anyone – even a man – on a board, just to say that you have one. You appoint the most qualified person you can find. With all the issues that Glencore is dealing with, do you really think that this is at the top of their list?

NEWS FLASH FOR VINCE CABLE – THE MOST QUALIFIED PERSON MAY NOT BE A WOMAN!

Don’t get me wrong. I worked directly for a female CEO. It was one of the most awesome work experiences of my life. Nonetheless, the gender of people in leadership positions of any kind is generally irrelevant to the success of those entities. It is always the QUALITY OF LEADERSHIP that makes the difference. Like Tony Hayward, for instance.

Reason Number Three. The Most Important One

I hate typing Xstrata. It’s not a word, and my fingers don’t want to type it. All the letters are typed with the left hand and it confuses my brain, because I am looking for a vowel somewhere between the X, the S, the T and the R. It would have been nice for that vowel to have been an I or an O or a U – or even a Y, just to give my right hand something to do.

That’s my rationale and I’m sticking with it. Here’s to Tony Hayward and to Glencore. May they have great success. And may I never have to type Xstrata again.

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