Cairn Energy has confirmed that it will not be paying a controversial £2.5m bonus to its former chief executive, Sir Bill Gammell, nor make a £1m gift to charities he supports, after a huge shareholder revolt.
Cairn first withdrew the payout bonanza from a special shareholder meeting in January. Yesterday, in its annual report, it said that following further consultation it "has now determined not to pursue the proposed award".
It added: "Meetings with shareholders will be held in April 2012 to close out this matter and to discuss the remuneration report."
Cairn had proposed the payout to Sir Bill because of his key role in negotiating the sale of Cairn India to Vedanta for £3.3bn last year.
The annual report shows that his pay package almost doubled last year as he shifted from chief executive to chairman. It rose from £979,000 to £1.83m as he received payments totalling £1.4m for "loss of office."Reuse content