Sam Walsh (businessman)

Sam Walsh was born 1949 and he grew up in the Melbourne seaside suburb of Brighton. He was one of five children. As a boy he actively engaged in weekly church going, scouting, and learning to play the piano and the trumpet. When Walsh was 15, his father was ill and after a series of operations his father died suddenly of a heart attack. Walsh described the death of his father as a time when everything changed.[4]

"My mother had never even written a cheque, she had never looked after the bills and that was a role I stepped into. I was managing the home finances and being the leader of the family, which continued on. You lose a lot. You lose the father figure, the advice and counsel. There's something lost that you don't get back. But if I look back, it did throw me in the deep end early and I swam and swam well."[4]

Walsh attended Brighton Grammar School and Taylor's College in Melbourne.[5] He graduated with a Bachelor of Commerce from Melbourne University, and he completed a Fellowship Program at Kettering University in Michigan.[6] He became a Fellow of Australian Institute of Management, Australasian Institute of Mining and Metallurgy, Chartered Institute of Purchasing and Supply Management, Australian Institute of Company Directors, The Institute of Directors (UK) and Australian Academy of Technical Sciences and Engineering.[3]

After graduating in commerce from Melbourne University, Walsh began his career as a trainee buyer at General Motors.[4] During the next 20 years in the automotive industry, he was promoted to and held senior positions at General Motors and at Nissan Australia.

Walsh joined Rio Tinto in 1991. He subsequently held a number of management positions within Rio Tinto, including chief executive of the Aluminium group 2001-2004, and chief executive of the Iron Ore group 2004-2013.[3] His responsibilities covered operations and projects in Australia, Brazil, Canada, Guinea and India, as well as Dampier Salt and Rio Tinto Marine. During 2004-2009, he oversaw the rapid expansion of the Iron Ore group. More than US$20 billion was spent on mine expansions and major infrastructure developments with net earnings exceeding US$9 billion.[7]

Meanwhile, in 2005 Walsh was appointed a director of the Western Australian Chamber of Commerce and Industry, and he was appointed a director of Seven West Media in 2008.[6] The following year he was appointed a director of Rio Tinto.[3] Residing in Perth, Walsh actively supported the arts in Western Australia. In 2008, he became Chairman of WA chapter of Australian Business Arts Foundation, Chairman of the Chamber of Arts and Culture WA and Chairman of the Black Swan State Theatre.[6] He was also president of the Western Australian branch of Scouts Australia.[6]

In 2010, Walsh was appointed an Officer in the General Division of the Order of Australia.[6]

On 17 January 2013, Walsh was appointed CEO of Rio Tinto Group, London. In his first year at the helm, Walsh took the company from a US$3 billion loss to a US$3.7 billion profit.[8] According to the company annual report in March 2014, Walsh was paid US$9.1 million in 2013, up 44% from the $6.3 million he earned in 2012. The figure included salary, a cash bonus, shares and other benefits. His predecessor Tom Albanese was paid 4 million pounds ($6.7 million) in 2012.[8] In return, the company reported Walsh exceeded expectations. He promised to cut operating costs by $2bn last year and achieved $2.3bn. He said he would cut exploration and development costs by $750 million and he cut them by $1bn. He vowed to pull capital expenditure down from more than $17.5bn to $13bn, and he hit that target.[8]

Walsh speaks at the Annual Plenary Meeting of the Voluntary Principles on Security and Human Rights Initiative on March 17, 2015 in London.

On 27 March 2014, Walsh was awarded the Honorary Degree of Doctor of Commerce at the graduation ceremony of The University of Western Australia.[9]

Rio Tinto Chairman Jan du Plessis confirmed on 23 October 2014, the company had retained Walsh for the longer term and Walsh would continue as CEO of Rio Tinto beyond the end of 2015. Originally, he was given a three-year contract. Walsh described his retention as a time to turn around the company fortunes by engendering the successful culture of how the company handled business.[4] However, in March 2016 Walsh announced he was retiring on 1 July 2016. Du Plessis revealed Jean-Sebastien Jacques, whom Walsh appointed to head Rio Tinto copper and coal, would be the new CEO.[10]

According to resource analyst Tim Treadgold, "Mr Walsh was leaving the company in reasonably good shape. He was handed a very difficult job but he had a reputation for getting things done. I think Sam has been a breath of fresh air at Rio, he's cleaned up a lot of mistakes they've made. But it is probably time for a new and younger man to come in."[2]

It was reported, Walsh would receive $1.4 million to cover the remaining nine months of his contract.[10]

In 2021, Walsh was appointed to the Order of the Rising Sun, with Gold Rays and Neck Ribbon.[11]

• Order of the Rising Sun, with Gold Rays and Neck Ribbon, 2021
• AusIMM Medal 2015
• Honorary Degree of Doctor of Commerce at the graduation ceremony of University of Western Australia, 2014[9]
• Graduate of Distinction, Lifetime Achievement Award from The University of Melbourne Faculty of Business and Economics, 2014[18]
• Knight Commander of Justice, Sovereign Order of St John of Jerusalem, 2018
• CIPS Award for CEO Procurement Champion, 2013[3]
• Gold Medal award by the Australian Institute of Company Directors for his leadership contribution within the wider community, 2012[3]
• Richard Pratt Business Arts Leadership Award, 2011[7]
• Hall of Fame, Brighton Grammar School, 2010[3]
• Honorary Doctor of Commerce by Edith Cowan University in recognition of his distinguished contribution to business and the community, 2010[3]
• Officer in the General Division of the Order of Australia, 2010[3]
• Western Australian Citizen of the Year, Industry & Commerce and an Australian Export Hero, 2007[7]
• Queen's Scout, 1967[19]

Walsh lives in Perth with his wife Leanne. He has three children and five grandchildren.[3]