F&C encourages company to withdraw bonus  February 1st, 2012

F&C Investment has spoken about how Cairn Energy has decided to withdraw a share award for its chairman following objections from its shareholders.

The company, which is an institutional stakeholder Cairn Energy, reported how the energy company will withdraw the resolution relating to a £2.5 million share award for Sir Bill Gammel.

F&C stated that while it recognises the overall value that Sir Gammel has generated for shareholders, it objected to a special transactional bonus that was being offered to ensure the successful completion of the Vedanta deal.

It added that it welcomes Carin's decision to withdraw the resolution and engage further with its shareholders to resolve the matter.

The company added that the move came as many shareholders were showing greater scrutiny of boardroom decisions to reward the work of its executives.

Recently, F&C has suggested the upgrading of Indonesia's credit rating is good news for the emerging economies and could encourage more people to place their funds in these countries.