Shareholders set to face off with Wood Group over executive pay rise following Amec takeover

 
Courtney Goldsmith
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Wood Group's profits dropped in the half year (Source: Getty)

Investors are poised to hit back at oilfield services firm Wood Group over the company's plans to hike its chief executive's pay by 25 per cent, according to reports.

Wood suggested plans to raise Robin Watson's basic salary from £600,000 to £750,000 in a letter to shareholders, the Sunday Times reported. Last year, Watson earned nearly £1.2m, and under the new plans he could make as much as £3.5m.

Although the company's profits have dropped since oil prices crashed in 2014, its recent £2.2bn takeover of Amec Foster Wheeler is set to ramp up annual revenues.

The company argued in favour of the pay rise because of the increased "size and complexity" of the group following the acquisition, but one top 10 investor told the Sunday Times it would reject the pay package.

A spokesperson for Wood Group said: “The board has done its due diligence and thought hard; these are complex matters. We have just started to inform shareholders and as is Wood’s way, shall listen to their views.”

Read more: Wood Group bags multi-million dollar UK contract with Total

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