Mick Davis, chief executive of UK-listed mining giant, Xstrata, is set to receive retention payments of nearly £29 million should the miner’s merger with commodities trader Glencore go ahead, in a move that could trigger a backlash from shareholders.

The payment, irrespective of the performance of the combined company, comes as several business leaders have been forced to leave in shareholder rebellions, including the heads of Aviva and Trinity Mirror.

In long-awaited legal paperwork, Glencore and Xstrata said £173 million would be paid to 73 senior Xstrata managers “whose positions are critical for our businesses”.

The payments risk stoking shareholder opposition to the deal. Two leading Xstrata shareholders said the “golden handcuffs” could persuade investors to vote against the deal. “The shareholders of Xstrata are not getting a premium, but Mick Davis clearly is getting one,” said one top-20 investor.

The pay arrangements will be put to a shareholder vote on July 12th. – (Copyright The Financial Times Limited 2012)