£2.5m Cairn Energy shares windfall withdrawn amid shareholder pressure
Tuesday 24 January 2012
A £2.5 million shares windfall for the founder of oil explorer Cairn Energy was withdrawn by the company today amid shareholder pressure.
Sir Bill Gammell, the former Scottish international rugby player, was due to receive the options as reward for helping to bring about the company's 5.5 billion US dollar (£3.5 billion) sale of its Indian operations last year.
A week before shareholders were due to vote on the payment, Edinburgh-based Cairn said it had pulled the resolution in the wake of discussions with several institutions. It now plans further talks with shareholders.
The move comes a day after Business Secretary Vince Cable outlined plans to address the growing controversy over executive pay, including by offering shareholders a binding vote on remuneration policies.
Sir Bill founded the business in the early 1980s and was chief executive from the company's stock market listing in 1988 until June last year, when he became non-executive chairman. He was awarded a knighthood in 2006 for services to industry in Scotland.
Explaining its decision to award the shares, Cairn told shareholders that Sir Bill was involved in "extensive and rigorous negotiation" to bring about the Indian sale to Vedanta Resources.
The disposal is due to generate a return to shareholders worth 3.5 billion US dollars (£2.5 billion), which will still be the subject of a vote next Monday.
As part of the incentive scheme, Cairn also planned to make a £1 million donation to charities nominated by Sir Bill. He was entitled to receive £1.4 million on stepping down as chief executive.
- 1 Nokia no more: Microsoft drops once-ubiquitous mobile name in favour of its Lumia brand
- 2 Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Couple die within 28 hours of each other after being married for 73 years
Ottawa shooting: Canadian soldier dies after being shot at National War Memorial – with one gunman killed inside parliament
Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Diwali 2014: What is the festival of lights and how is it celebrated?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
Support for EU membership 'at highest level since 1991 with most Brits wanting to stay in'
London bus driver 'kicks gay couple off for kissing'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...