28th Aug 2019 17:27
(Alliance News) - Nostrum Oil & Gas PLC on Wednesday said it continues to believe that the company's remuneration policy is aligned with its business needs after facing a shareholder revolt over pay policies at the June annual general meeting.
At the company's annual general meeting, 25% shareholders opposed the remuneration report, and 29% rejected the remuneration policy. However, all resolutions were passed by shareholders.
The company, in its annual general meeting result statement, said it will speak with shareholders to better understand the reasons behind the significant minority opposition over pay policies.
Nostrum Oil on Wednesday said the main issues voiced by investors included extension of performance and vesting period under the company's long term Incentive plan; removal of accelerated vesting of incentive awards; abolishment of no minimum shareholding requirement for directors; and concerns over use of so-called "golden hellos", or large bonus payments, over recruitment of new directors.
In its defence, Nostrum said current provisions of the LTIP relating to the performance period and vesting period are appropriate and aligned with the interests of shareholders and modifying provisions of the LTIP would not be the right course of action. It added that it will continue to keep its remuneration policy under review and engage with shareholders.
Shares in Nostrum closed at 22.85 pence each on Wednesday, down 6.0%.
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