John Wood Group PLC (LON:WG) has bowed to shareholder pressure by cancelling higher share-based long term incentive payments (LTIP) for its top executives.
The energy services company said it would no longer increase LTIP awards for chief executive Robin Watson and chief financial officer David Kemp for the 2019-2021 period.
The group had raised Watson’s LTIP award to 250% of his annual base salary and Kemp’s to 200% as it was “concerned about longer term retention for senior management”.
Following criticism from shareholders, the board and executive directors mutually agreed to cancel the higher share-based payouts.The awards will be issued at the previous level of 200% for Watson and 175% for Kemp.
“The retention issue for our executive directors and senior management remains,” the firm said.
“We stand by our principles to ensure we incentivise and motivate them in the long- term to deliver the business strategy.
“We look forward to engaging with shareholders on alternative incentive vehicles as part of the remuneration policy review for 2020.”
In afternoon trading, shares were down 1.7% to 460p.