The terms must be backed by Xstrata shareholders as part of the proposed merger, the FT said, adding that the deal would be derailed if shareholders fail to back the pay package.

Mick Davis is expected to receive is up to 50 million pounds ($78.2 million), which will keep him at the mining company for the next three years, rather than a performance linked package, people familiar with the terms are cited as saying by the newspaper.

Glencore will this week move into the final stage of its $30 billion takeover of miner Xstrata as shareholders are sent detailed documents on the long-awaited deal.

The terms of the pay package are set to be revealed in those documents, the FT said.

($1 = 0.6396 British pounds)

(Reporting by Stephen Mangan; Editing by Edwina Gibbs)

• A Permanent Economic Emergency