Tullow Oil is facing a shareholder revolt over the “excessive” rewards it plans to give senior directors.
Chief executive Aidan Heavey saw his pay jump from £2.6million to £2.8million in 2013, despite the firm’s share price falling by 30%.
The FTSE 100 firm is also replacing its bonus scheme with a new programme which could see its top bosses earn six-times their base salary.
A second shareholder spring is brewing in London – and a series of rebellions have already take place at Barclays and Astra Zeneca. Last night advisory firm Pirc urged investors to reject Tullow’s pay regime at the energy firm’s AGM on Wednesday.
“Tullow are proposing a major change in remuneration structure via the merger of the annual bonus and the long-term incentive into the Tullow Incentive Plan,” the group said.
“The plan itself is an excessive one, with a limit of 600% of base salary. The company’s policy on contracts also raises concerns particularly the discretion to buy back forfeited awards when hiring new executives to the board.”