LEADERSHIP DEVELOPMENT AND SUCCESSION PLANNING
CASE STUDY: CAIRN ENERGY PLC
Reviewing and revising the current share incentive scheme, as well as devising new share incentive scheme arrangements for Cairn Energy India.
Background
Cairn Energy Plc aimed to deliver optimum shareholder value and raise capital for future exploration and development through the IPO of its existing Indian business. Wildcat One were involved in initial IPO discussions and, worked closely with senior management and the HR team to successfully restructure the Edinburgh Head Office and the Indian arm of the Business. Following this initial work, Cairn Energy Plc asked Wildcat One to review and revise their current share incentive scheme arrangements for the organisation, as well as devise new share incentive scheme arrangements for Cairn Energy India.
Approach
Wildcat One were asked to co-ordinate this review and make proposals for new schemes. This entailed working closely with expert advisors to design schemes that would meet the needs of the restructured businesses and be acceptable to shareholders. The work on share schemes for Cairn Indian Ltd. was very complex and involved working with Indian lawyers on Indian company law and tax regulations, to determine what would be possible to achieve. Once the schemes had been drafted, they were lodged with the relevant Indian regulatory authority for approval.
Managing this work involved regular contact with relevant Directors and Board members and co-ordinating initial consultations the Company’s main institutional investors.
Result
All new schemes, including those for Cairn India Ltd, were unanimously approved by shareholders at an Extraordinary General Meeting of the company in November 2006. These schemes have now been implemented.