CAIRN Energy chief executive Simon Thomson has seen the total value of his pay package fall by around 25 per cent following a drop in the value of the bonus and incentive awards he received.
The annual report of the Edinburgh-based oil and gas firm shows Mr Thomson earned total remuneration of £2,204,001 in 2018 compared with £2,992,615 in the preceding year.
The accounts cover a year during which Cairn grew revenues to $410m, from $33m, reflecting the benefits of the first full year of production from two giant fields it brought into production in the UK North Sea in 2017.
Mr Thomson’s salary rose to £566,000 from £560,000. He was paid a £495,000 bonus, compared to £534,000 in the preceding year. The value of long term incentive awards vesting in favour of Mr Thomson fell to around £1m from £1.8m.
The number of awards vesting was based on a performance period from 2015 to 2018. The report notes that Cairn’s total shareholder return over the period placed it between fifth and sixth in a group of 18 comparator companies.”
Some 56.65% of the maximum awards possible vested. Mr Thomson was paid 87.5% of the maximum bonus possible.
Cairn’s chief financial officer, James Smith, earned £1,426,526 in total, against £1,949,340 in the prior period.
The remuneration policy followed in 2018 was approved by 97.96% of votes cast by shareholders at Cairn’s 2017 general meeting.
Law firm Shepherd and Wedderburn earned £25,234 for assisting Cairn’s remuneration committee in 2018. Professional services firm Aon earned £21,717 for its work for the committee.
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