Cairn Energy Halts $3.9 Million Share Award to Former CEO
Cairn (CNE) Energy Plc, which spent about $1 billion on exploring off Greenland without making a find, canceled plans to award more than 2.5 million pounds ($3.9 million) in shares to former Chief Executive Officer Bill Gammell.
The company withdrew the resolution from its circular to shareholders distributed on Jan. 10 after receiving comments “from several institutional shareholders,” Edinburgh-based Cairn said today in a statement. It will “consult further with shareholders on the matter” before a meeting set for Jan. 30.
Cairn on June 16 said that Gammell will step down as CEO and become non-executive chairman. Gammell, a former international rugby player for Scotland, led the company as it discovered oil and gas in India. He was behind the $8.7 billion sale of the majority of its India business to Vedanta Resources Plc (VED), which was delayed by about 16 months.
Cairn, which doesn’t plan further Greenland drilling this year and will be focusing on exploring in the Mediterranean Sea, will return $3.5 billion to shareholders from the India deal in a special dividend.
Cairn fell 2.8 percent to 284.1 pence in London trading at 9:31 a.m. The shares are down 35 percent in the last year.
To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net
To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net
Rate this Page