Hunger Games? Here's why more Fortescue (ASX:FMG) execs are calling time out on the miner

Why is Fortescue's staff exodus being compared to a game to the death?

| More on:
a female archer looking rustic and slightly dishevelled is in extreme close up as she draws back her bow and narrows her eye to aim for a target .

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Fortescue Metals Group share price is 5% in the red on Tuesday
  • More senior executives and managers are said to be exiting the company 
  • Fortescue is due to report its latest earnings results tomorrow

The Fortescue Metals Group Ltd (ASX: FMG) share price is down 5% today amid news the company is facing a staff exodus.

The Fortescue share price is currently trading at $21.60, a 5.03% fall. In comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) is 0.29% in the red at the time of writing.

Let's take a look at the latest news on the company.

What's in the water at Fortescue?

Fortescue is facing a mass exodus of senior executives and managers, The Australian reported. Communities group manager Heath Nelson is rumoured to be leaving the company along with Fortescue Future Industries global resources manager Nadia Butler. The West Australian also reported these departures.

In further reports in The Australian, Fortescue Future Industries commercial head Bethwyn Cowcher and funding group manager Penny Stonier are also said to be leaving Fortescue. Based on their LinkedIn profiles, Cowcher started at Fortescue in January 2012 while Stonier has been with the company since June 2009.

As my Foolish colleague James reported in December, Fortescue's CEO Elizabeth Gaines has also stepped down as CEO. She will transition to the role of non-executive director and assist with a global search for her replacement.

The latest exodus follows the departure of several other directors and senior staff over the past 12 months.

Staff who spoke to The Australian in December have likened the company's culture to 'the Hunger Games'. The Hunger Games is a series of dystopian novels and films where competitors are engaged in a brutal fight to the death. The game ends when only one person remains alive.

But in response to this suggestion, Fortescue chair Andrew 'Twiggy' Forrest defended the company. He said:

Yes, I can see that people can misinterpret that as Hunger Games, but it's not – it's efficiency. It's called strength of selection.

Fortescue is due to report its earnings tomorrow. On a positive note for the company, JP Morgan analysts are expecting earning results and profit forecasts to land ahead of consensus.

As my Foolish colleague Zach reported, JP Morgan is looking for an H1 FY22 net profit after tax (NPAT) of $2.77 billion (consensus $2.70 billion) and 86 cents per share dividend.

Fortescue share price snap shot

The Fortescue share price has surged 13% year to date but fell more than 11% in the past 12 months.

For perspective, the benchmark index has returned around 5% over the last year.

Fortescue has a massive market capitalisation of around $67 billion based on today's share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

A man wearing a hard hat and high visibility vest looks out over a vast plain.
Resources Shares

Can a new leadership team turn Mineral Resources around?

Down 50% in a year, is the Mineral Resources share price primed for recovery?

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Resources Shares

Up 29% in a year, are Lynas shares still a good buy today?

A leading expert delivers his verdict on the outlook for Lynas shares.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

BHP share price tumbles amid $66 million legal hit

ASX investors are bidding down the BHP share price today. Here’s what’s happening.

Read more »

Three miners looking at a tablet.
Resources Shares

Here's the BHP dividend forecast from top analysts through to 2029

How big could the dividends be in the coming years?

Read more »

Female miner smiling in front of a mining vehicle as the Pilbara Minerals share price rises
Resources Shares

Forget BHP and CBA shares and buy these 4 promising ASX All Ords stocks instead

A leading fund manager expects these quality ASX All Ords stocks will outperform CBA and BHP into 2026.

Read more »

Man pointing at a blue rising share price graph.
Resources Shares

Up 275% in a year, why this ASX All Ords mining stock could keep racing higher into 2026

A leading fund manager forecasts more outperformance to come for this rocketing ASX All Ords miner. But why?

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why is the BHP share price smashing the benchmark today?

BHP, Rio Tinto, and Fortescue shares are all racing ahead of the ASX 200 on Thursday. But why?

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Share Market News

Broker tips big upside for these ASX materials shares

Two materials companies have earned a recommendation from this broker. 

Read more »