Tullow Oil plans 600pc cap on bonuses as boss gets €3m
TULLOW Oil boss Aidan Heavey enjoyed one of the highest salaries on the market last year, despite moves by the company to rein in its bonuses.
Heavey was paid a base salary of stg£856,110 (€1m) for 2012 and his total remuneration was just over £2.6m, according to Tullow's annual report. This included shares worth £556,471 and a £642,083 cash bonus.
Tullow has proposed what it calls "a radical overhaul of the pay policy for executive directors" in light of "widespread public concern about senior executive pay".
That means the Irish oil baron's pay package will be governed by new rules in 2013. From this year, executives at the oil company will only be entitled to an annual award up to 600pc of their salary, made up of a cash payment equal to salary and another 500pc in shares.
Of course, that's in addition to their actual salary.
The new bonus cap is down from a potential bonus worth up to 700pc of salary.
The FTSE 100 company, which is also listed on the Irish Stock Exchange, made headlines this year after suing Heritage Oil for the taxes it paid in Uganda on the latter's behalf.
It's not all bad news for the senior execs though – base salaries for executive directors at Tullow increased by 5pc from January 1, 2012. But future fixed pay increases, the new policy says, will not exceed the "average increase awarded to other UK-based employees".
So for 2013, executive salaries have been increased in line with UK staff inflation of 3.5pc.