Published February 7, 2009

Enter Goodyear, with a long-term view

By OH BOON PING

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CHARLES Goodyear, the incoming chief executive of Temasek Holdings, is no stranger to making long-term investments.

MR GOODYEAR Says his management style is 'simple - management by walking around. Walk around and talk to people who are on the front line of making things happen'

The 51-year-old American has previously helmed mining giant BHP Billiton, which takes longer-term views on its projects - a 'great common denominator' between the companies. 'So it is a great opportunity to think of investments from a long-term perspective,' Mr Goodyear said at a press conference yesterday.

Temasek said he joined its board only on Feb 1 this year, but had been identified as a suitable successor to current CEO Ho Ching as early as 2007 - the same year he stepped down as the chief executive and executive director of BHP Billiton.

In an interview with CNN two years ago, Mr Goodyear described his management style as 'simple', adding that it is 'management by walking around. Walk around and talk to people who are on the front line of making things happen'.

The American had joined BHP as chief financial officer in 1999, after prior stints at Free- port-McMoRan, a natural resources group, and Wall Street investment bank Kidder-Peabody.

In 2001, BHP acquired Billiton, the London-based but predominantly South African-focused mineral-mining company, to become BHP Billiton, and Mr Goodyear became the chief development officer, stationed in London. The new corporation soon posted sales of almost US$20 billion and had close to US$30 billion in market capitalisation.

Also in 2001, BHP acquired Dia Met Minerals, with its 29 per cent stake in Canada's only producing diamond mine; combined with Alcoa's North American metals-distribution business in a joint venture called Integris Metals; and spun off its remaining steel business as BHP Steel to focus on minerals, oil and gas operations.

In 2003, BHP named him the new CEO and he spearheaded the group's expansion in China, closing its largest-ever deal in a joint venture with four Chinese steel mills in 2004. In the venture, named Wheelarra, the mills agreed to purchase more than US$9 billion worth of ore over a 25-year period, where shipments would come from BHP Billiton's Jimblebar mine in Western Australia, and the mills would take a 40 per cent stake in a sub-lease of the mines.

As a result of surging sales in China, rising metal prices and increased sales of base metals and stainless steel, BHP Billiton's 2003-2004 first-half profit jumped 30 per cent to US$1.2 billion.

With him as CEO, BHP's stock rose almost fourfold, outpacing the MSCI Materials Index's 83 per cent advance. Between 2003 and 2007, revenue went from US$15.6 billion to US$47.5 billion amid record gains in commodity prices.

When he finally left the mining company in 2007, Mr Goodyear took home a salary package of about US$7.82 million for that year. This included a US$1.78 million base salary and US$1.52 million in bonuses, according to a Daily Telegraph report.