Heavey shares €15.4m award as Tullow fights shareholder revolt
Published 15/05/2011 | 05:00
AIDAN Heavey's supercharged oil company Tullow faced down a shareholder revolt last week, as almost 40 per cent of its backers voted against changing the terms of an executive bonus scheme.
Investor revolts at Irish companies are exceedingly rare as institutional shareholders typically back management when it comes to a vote. However a number of 'City' institutions have started to take a hard line on bonus schemes based on total shareholder returns.
Tullow had sought shareholder approval to increase the amount of shares it could give out to its executives under the bonus scheme -- but also sought to raise the performance bar. Almost 37 per cent of shareholders voted against this plan. The shareholder revolt was beaten off just one day before Mr Heavey and his team were conditionally awarded €15.4m in shares.
Tullow's latest annual report shows that Mr Heavey and three of his top executives shared a €12.9m pay day last year between shares vesting and conditional awards under the bonus scheme. This was on top of their salaries, benefits and pensions.
Sunday Indo Business