More than 92% voted to re-elect Aidan Heavey as a director of the Irish-founded exploration company, at the London meeting, while 99.9% backed the re-election of Paul McDade.
Earlier this year, Tullow announced its plans for then chief operating officer Mr McDade to become its new chief executive; succeeding Mr Heavey — the explorer’s founder and leader since 1985 — who would then become interim chairman. Those changes formally came into being with yesterday’s vote. Earlier this week, Tullow gained 95% backing for its near €700m share sale/rights issue aimed at lowering its debt mountain.
Prior to yesterday’s meeting, Tullow investor Royal London Asset Management said it would be voting against Mr Heavey’s election as chairman, saying it opposed the plan to continue paying Mr Heavey his pay packet when he switched to his new role. Mr Heavey’s remuneration will remain unchanged for the next six months when will be lowered to reflect his reduced role.
Mr Heavey’s chairmanship is set to last for a transition of two years maximum. At the time of the management change announcement, in January, Mr Heavey said there had been no pressure on him to stand aside and that institutional investors were happy with the transition plan and it had always been Tullow’s intention to overhaul its management team after completing its rebalancing amid the lower oil price environment.