FORMER Bowleven chief executive Kevin Hart received $444,000 (£330,000) compensation after being ousted from the board of the firm, which is parting company with the last member of the old guard of directors under a cost saving drive.
The oil and gas firm, which recently moved its head office from Edinburgh to London, said David Clarkson had elected to retire as chief operating officer with immediate effect. He will resign from the board following Bowleven’s general meeting on 13 December.
Chairman Chris Ashworth said there was no longer a role for a chief operating officer at Boweven following a shake up at the firm since a new management team took charge in March.
Five former directors including Mr Hart were voted off the board that month after a campaign for change led by the Crown Ocean Capital investment company.
Bowleven has cut exploration activity to focus on its interests in two licences in Cameroon, which contain undeveloped finds.
“With Bowleven completing its transition to a holding company, there is no longer a role for a Chief Operating Officer, and in line with other cost-saving measures it is appropriate to close this position,” said Mr Ashworth.
“The Board would like to thank Mr Clarkson for his considerable service to Bowleven and for the valuable role he played in providing continuity through a period of change.”
Mr Clarkson was the only director Crown Ocean Capital did not seek to have voted off the board in March.
Former chairman Billy Allan was re-elected. He resigned in March.
Crown Ocean accused the management team led by Mr Hart of destroying significant shareholder value after incurring heavy losses under a strategy that involved costly exploration activity in Cameroon.
The annual report details the costs associated with the transition at Bowleven.
Mr Hart was entitled to receive $444,000 compensation for loss of office under the terms of his contract.
After leaving Bowleven Mr Hart said the company had found a lot of oil and gas off Cameroon in his ten years in charge but was frustrated by geopolitical factors.
Former chief financial officer Kerry Crawford was paid $299,000 compensation for loss of office.
Other directors voted off the board got $38,000 compensation for loss of office in total.
Bowleven incurred $742,000 head office redundancy costs. It cut around 30 jobs, 75 per cent of the former total, after the new management team took charge.
The company made no comment when asked what benefit the changes had secured for shareholders.
Bowleven incurred $530,000 legal and professional costs associated with work on its rebuttal of the claims made by Crown Ocean before the shareholder vote on its proposals for change in March.
Owned by German financiers Christian Petersmann and Konstantin Stoyanov, Crown Ocean has a 26.8 per cent stake in Bowleven.
Mr Clarkson is on a 12 month contract and earned $307,000 salary in the latest year . Bowleven said the terms of his departure were confidential.
In the report, new chief executive Eli Chahin said: “Whilst the work is ongoing, Bowleven now has in place a fit-for-purpose organisation and business model that has the potential to deliver shareholder value into 2018 and beyond.”
Bowleven has a 20 per cent stake in the offshore Etinde permit. It sold stakes in Etinde for $250m in 2014 under Mr Hart, to New Age of Cameroon and Russia’s Lukoil.
The new team has written the value of Boweven’s interest in the Bomono licence down to zero.
Mr Chahin earned $137,000 total remuneration in the year to 30 June. He was appointed on 14 March.
Bowleven shares closed at 29p.
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