30th Nov 2018 15:00
(Correcting that Nostrum had now amended terms of its incentive plan)
LONDON (Alliance News) - Nostrum Oil & Gas PLC said Friday its non-executive directors have agreed to not accept share awards under the firm's incentive programme after engagement with shareholders and following a significant minority of investors voting against its pay policy.
At its annual general meeting in June, 24.8% of votes cast were opposed to the remuneration report of Nostrum with 34.5% disagreeing with the remuneration policy.
At the time, Nostrum announced - following discussions with investors - that its non-executive directors had agreed to renounce their rights to share awards under the long-term incentive plan. The non-execs had also agreed to not accept any further LTIP awards in the future.
Since then, Nostrum has "continued their consultations" with shareholders regarding remuneration and has taken a "number of specific actions" in response to their feedback.
Nostrum has now amended the terms of its LTIP to make non-executives ineligible to participate. The firm will also propose to shareholders that non-execs be prohibited from being involved in the LTIP within the remuneration policy.
The remuneration committee has also been changed so it now only included independent non-executive directors. This newly-composed committee will also provide further clarity in future annual reports related to key performance indicators related to the executive director bonuses.
"The board and the remuneration committee are committed to continuing their engagement and dialogue with the company's shareholders and their advisory bodies on these and other matters and welcome their feedback," Nostrum added in a statement.
Shares in Nostrum were 1.8% lower at 132.20 pence on Friday.
Related Shares:
Nostrum Oil&gas