Cairn Energy has withdrawn its proposal to give its non-executive Chairman, Sir Bill Gammell, share options worth £2.5m.
The award was first suggested in a circular to shareholders on January 10th as part of Sir Bill's reward package for securing the sale of a controlling stake in Cairn India last year to Vedanta Resources for $5.5bn.
In an announcement today, however, Cairn says institutional shareholders have opposed the award, and so it will not be offered for approval at a general meeting scheduled for the 30th of January.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The Association of British Insurers sounded the alarm over Sir Bill's reward package which also included a £1m donation to youth sports charities in Scotland and £1.4m in cash. The Financial Times has reported that shareholders are angry the award contains no performance criteria.
Shares in Cairn Energy have dropped 34% in the past 12 months despite the successful disposal in India.
BS
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
