SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 27, 1998
FREEPORT-McMoRan COPPER & GOLD INC.
Delaware 1-9916 74-2480931
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
1615 Poydras Street
New Orleans, Louisiana 70112
Registrant's telephone number, including area code: (504) 582-4000
Item 5. Other Events.
The following news release was issued by Freeport-McMoRan Copper
& Gold Inc. on
March 27, 1998:
NEW ORLEANS, LA., March 27, 1998 - Freeport-McMoRan Copper & Gold
Inc. (FCX) announced today that James R. Moffett, Chairman and
Chief Executive Officer, and Richard C. Adkerson, President,
Chief Operating and Chief Financial Officer, have agreed to cap
their annual cash compensation for the next five years in order
to conserve cash as part of the company's "Hunker Down and Go"
program. In return, Messrs. Moffett and Adkerson have each been
granted stock options with the right for eight years to purchase
FCX Class B common shares at $19.03 per share.
Under the revised compensation program, Messrs. Moffett's
and Adkerson's Annual Incentive Plan (AIP) cash bonus for the
next five years will be capped at $2.75 million and $1.375
million, respectively. AIP cash bonuses for 1997 were $5 million
for Mr. Moffett and $2.5 million for Mr. Adkerson. In return for
the cap on AIP cash bonuses, Messrs. Moffett and Adkerson have
each been granted stock options to purchase 1.75 million shares
and 875,000 shares, respectively.
The Chairman of the Corporate Personnel Committee of FCX's
Board of Directors, Robert W. Bruce III, stated, "The Corporate
Personnel Committee and Messrs. Moffett and Adkerson have agreed,
as part of FCX's "Hunker Down and Go" program to conserve cash in
this period of uncertain commodity prices, that FCX's two most
senior executives should further align their interests with the
interests of shareholders by foregoing a substantial portion of
their cash compensation tied to a bonus plan determined by FCX's
operating cash flow. This adjusted compensation program will
result in cash savings to FCX estimated to be $3 million in 1998
and could result in an estimated annual cash savings of $3
million to $7 million over the following four years. FCX's Board
and management continue to make every effort to enhance
shareholder value by maximizing the results of FCX's worldwide
operations which include its Grasberg ore body in Irian Jaya,
Indonesia, one of the lowest cost and largest copper and gold
reserves ever discovered, while further reducing costs."
FCX is engaged in mineral exploration and development,
mining and milling of copper, gold and silver in Irian Jaya,
Indonesia and the smelting and refining of copper concentrates in
Spain. FCX is also involved in a joint venture to construct and
operate a smelter/refinery in Indonesia.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
FREEPORT-McMoRan COPPER & GOLD INC.
By: \s\ C. Donald Whitmire
------------------------------
C. Donald Whitmire
Controller - Financial Reporting
(authorized signatory and
Principal Accounting Officer)
Date: April 1, 1998