PRESS RELEASE 26 (25/05/2012)
At yesterday’s AGM, Faroe Petroleum withdrew a resolution authorising large performance incentive payments to its executives. John Bentley, Faroe Chairman said:
“Since the publication of the Notice of Annual General Meeting in April 2012, the Company has been in further dialogue with its larger shareholders. Following those discussions, the Company intends to make a number of changes to the proposed Faroe Petroleum Exceptional Performance Incentive Plan (“EPIP”) and consequently Resolution 7 has been withdrawn.”
On 2nd May, ShareSoc issued a press release condemning the proposed award as “extremely generous” and “not particularly stretching”. We recommended that our members should vote against resolution 7.
We are delighted that Faroe shareholders have heeded our call and that Faroe’s Board have paid attention. We look forward to a constructive dialogue in the future, to ensure that executive awards are proportionate, stretching and aligned with shareholders’ interests.
This example illustrates that shareholder engagement can lead to active change, and urge Boards and shareholders to enter into a dialogue. ShareSoc is happy to help represent the interests of private shareholders in such dialogues. Collectively, private shareholders form a substantial constituency of owners of British companies. Their voice deserves to be heard.
For further information, please contact:
Roger W. Lawson,
ShareSoc Telephone: 020-8467-2686
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About the UK Individual Shareholders Society (ShareSoc)
ShareSoc represents and supports individual investors who invest in the UK stock markets (and who own as much as 30% of the shares in UK public companies in aggregate). We are a mutual association controlled by our members with “not-for-profit” articles and incorporated as a company limited by guarantee. The organisation is financed by member subscriptions, donations from supporters and by the services it provides to members. Associate Membership of ShareSoc is free and is open to everyone with an interest in stock market investment. More information on ShareSoc can be obtained from our web site at www.sharesoc.org .