6th Aug 2018 12:11
LONDON (Alliance News) - Bahamas Petroleum Co PLC said Monday it has amended its chief executive's contract terms, include a salary reduction, to reduce its cash costs.
Bahamas said that after the 2015 oil price fall and general sector slowdown, Chief Executive Simon Potter proposed changes to his compensation.
As a result, since April 2016, 90% of his compensation has been foregone to be repaid in an equal cash and share mix, but this is conditional on the company securing funding for an exploration well.
Bahamas said the terms of his new deal include his annual salary falling to USD375,000, all deferred cash worth USD1 million being written off, and no further share entitlements to be awarded.
However, existing share entitlements, which are worth 63.6 million shares, will be kept, though they are still conditional on funding being secured. With Bahamas shares currently trading at 5.54 pence each, up 0.7%, these shares would be worth some GBP3.4 million.
Non-Executive Chairman Bill Schrader said: "We consider the changes outlined to the CEO's contractual arrangements to be in the best interests of shareholders, by removing future cash obligations whilst maintaining the incentivisation of our CEO at this important and exciting time for the company.
"Importantly, alignment between management and shareholders has been maintained."
Related Shares:
BPC.L