CAIRN Energy yesterday confirmed that its founder and former chief executive will not be paid a £2.5m bonus after shareholders staged a revolt.
The company’s 2011 annual report said that the company had decided “not to pursue the proposed award”.
The Edinburgh-based oil company saw the plan – under which £1m would be paid to charities that Gammell supports – torpedoed at a shareholders meeting in January.
Gammell, who founded Cairn in 1992, was in line for the payout because of his role in negotiating the sale of Cairn India to Vedanta for £3.3bn last year.
The report added: “Meetings with shareholders will be held in April 2012 to close out this matter and to discuss the remuneration report.”
Despite the payout being knocked back, his total pay almost doubled last year as he shifted from chief executive to chairman.
It jumped from £979,000 to £1.83m as he received £1.4m for “loss of office.” The annual report showed that Gammell is paid £230,000 a year in his role as chairman.
New chief executive Simon Thomson is on a salary of £494,000, up from £375,000 in his previous role as commercial director.