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Cairn warned Gammell's £1.4m will be flash point

CAIRN Energy has been warned by corporate governance watchdog Manifest that a £1.4 million payment to founder Sir Bill Gammell could be a "flash point" at its next annual investor meeting even after the Edinburgh oil explorer yesterday backed down on a separate £2.5m share award.

HARD-HEADED: Mike Watts, left, Cairn exploration director, chief executive Sir Bill Gammell, centre, and HP Bhalla, head of Cairn's Rajasthan field.
HARD-HEADED: Mike Watts, left, Cairn exploration director, chief executive Sir Bill Gammell, centre, and HP Bhalla, head of Cairn's Rajasthan field.
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TIM SHARP CITY EDITOR

The Herald revealed last week that Cairn agreed the payments in the summer when Sir Bill stepped up from chief executive to non-executive chairman.

However, yesterday it bowed to investor pressure and pulled the share award ahead of a vote due later this month.