Glencore’s CEO loses $500 million in one day

Ivan Glasenberg, the CEO of the world’s largest commodity trading and mining company, reportedly lost $500 million on Monday as shares for Glencore hit record lows—falling 30 percent—after analysts raised fears about lower metal prices.

Shares for Glencore are down nearly 90 percent since the company’s listing in 2011, and Glasenberg’s fortune are following suit. The CEO has lost 74 percent of his net worth so far this year, and 81 percent since July 2014. As of Monday, the CEO is worth $1.4 billion, compared to $1.9 billion he had on Friday.

Concerns over low commodity prices continue to cripple Glencore and its debt-laden balance sheet. According to the Wall Street Journal, the company’s blend of mining and trading operation is actually a flaw and investors are concerned about the high levels of debt Glencore’s trading arm is accruing.  

“They’d touted the trading business as being a less cyclical business that would stabilize the more cyclical mining business,” said Craig Pirrong, finance professor and commodity expert at the University of Houston. “But what’s happened is the extreme cyclicality of the mining business has compromised its viability as a trading company.

In addition to Glasenberg’s $500 million single-day loss, the two other executives of Glencore – Daniel Mate and Telis Mistakidis – lost a combined $400 million on Monday as well. 

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