Xstrata poised to back £44bn merger with Glencore The deal has hung in the balance for weeks, despite the higher offer - tabled after Qatar, the second biggest investor in Xstrata, demanded more - as wrangling continued around pay plans and other issues. Retention packages Xstrata planned for its managers, criticised by investors as "pay to stay" bonuses, have been an issue for many of its investors. The deal was structured so that it hinges on shareholders" approval of the controversial retention payments, which would total at least £140m in bonuses if they stay for three years. Xstrata's board has been reluctant to abandon the packages as it sees them as necessary to retain key staff. Stoking concerns, the higher offer from Glencore's Ivan Glasenberg came with a demand that he lead the combined group, rather than Xstrata's Mick Davis as was originally planned. Mr Davis is to leave with an expected £8m pay-off, raising worries that Xstrata staff will follow him out of the door. As a result of the controversy over retention payments, it is thought Xstrata and Glencore will give investors the option to vote on the merger and the payments separately. That would mean shareholders could vote against the pay plans without scuppering the deal itself. Sir John Bond, chairman of Xstrata, will be chairman of the combined group and Glencore chairman Simon Murray is expected to step down. It is understood that Qatar will back both the recommended takeover and the retention deal.