Monday, Apr 26, 2010

LONDON (Dow Jones)--Lamprell PLC (LAM.LN) said Monday it has reviewed executive director's pay and decided to amend both the Chief Executive and Chief Financial Officer's remuneration by increasing base salary and lowering the annual performance bonus plan target.

With effect from Jan. 1 Chief Executive, Nigel McCue's salary was increased 89% to $785,662, from $415,500, the energy services provider disclosed in its 2009 report and accounts. Chief Financial Officer, Scott Doak's base salary rose 33% to $472,153, from $354,393.

Under the new remuneration scheme, McCue's and Doak's annual bonus will be capped at 100% of base salary compared with 200% last year--60% of which will be based on financial targets and the rest dependent on achieving personal objectives.

Lamprell said it historically positioned the base salaries of the executive directors below the median for the competitive market, with a substantial proportion of their remuneration being performance-related. However, after a review of the overall package--especially in the light of a highly volatile market in 2009--the Remuneration Committee decided to adjust the CEO and CFO basic salaries to be competitive at the upper quartile of the market.

The company said two separate benchmarking exercises found anomalies between the company's executive director pay and that of its comparator group, with base salaries significantly lower and variable pay through bonus significantly higher than the comparator group.

In view of the Company's financial performance during 2009 the Committee has determined that no bonuses will be paid.

In 2009 net profit fell 67% to $28.4 million on revenue 43% lower at $425.5 million due to the higher percentage of lower margin contracts and lower demand in the energy industry.

Shares at 1220 GMT up 8.2 pence, or 3.1%, at 274.7 pence in a slightly higher FTSE 250 Market--up 1.3%. 


 
Company Web site: www.lamprell.com 
 
-By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; iain.packham@dowjones.com

(END) Dow Jones Newswires

26-04-10 1221GMT