Capital oil giant withdraws founder’s £2.5m windfall

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A £2.5 MILLION shares windfall for the founder of oil explorer Cairn Energy has been withdrawn by the company amid shareholder pressure.

Sir Bill Gammell was due to receive the options as reward for helping to bring about the company’s £3.5 billion sale of its Indian operations last year.

A week before shareholders were due to vote on the payment, Edinburgh-based Cairn said it had pulled the resolution in the wake of discussions with several institutions. It now plans further talks with shareholders.

The move comes a day after Business Secretary Vince Cable outlined plans to address the growing controversy over executive pay, including by offering shareholders a binding vote on remuneration policies.

Sir Bill founded the business in the early 1980s and was chief executive from the company’s stock market listing in 1988 until June last year, when he became non-executive chairman.