Genel Energy was thrown into fresh turmoil yesterday when its second biggest shareholder was ousted from its board and more than 30 per cent of investors voted against Murat Ozgul, its chief executive, and his pay package.
Leading shareholders in the troubled Kurdish Iraq-focused company appeared to be at war with one another as 51.6 per cent voted to remove Tolga Bilgin, head of Bilgin Energy, of Turkey, who had been appointed to the board only in March after his company acquired a 15 per cent stake in Genel last year.
The power struggle comes after the departures this week of Genel’s co-founders Tony Hayward, the former BP boss who served latterly as its chairman, and Nat Rothschild, who remains an 8 per cent shareholder.
Genel has lost more than 90 per cent of its value since Mr Hayward and Mr Rothschild brought it to the London market in 2011. It was hit hard by the oil price crash and by the rise of Islamic State in the Middle East, as well as repeated reserves writedowns for its Taq Taq oilfield.
The board is now down from nine people to five after Simon Lockett and Chakib Sbiti, two independent non-executive directors, also quit.
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Only Mr Hayward has been replaced so far, with Stephen Whyte, an industry veteran, taking over as chairman. Ben Monaghan, chief financial officer, is also leaving at the end of the month.
Mr Bilgin, Mr Rothschild and Mr Lockett were understood to have been opposed to Genel’s decision to boost Mr Ozgul’s pay for 2016, a year in which its share price halved as it was forced to write down its oil reserves.
Mr Ozgul was awarded a £1.5 million pay package for the year, up from the £531,000 he received for the five and a half months he spent as chief executive in 2015, and was given an enhanced long-term bonus potential.
Yesterday 30.7 per cent of shareholders voted against the pay report, while 30.5 per cent voted against the re-election of Mr Ozgul as chief executive.
The same percentage voted against the re-election of Gulsun Nazli Karamehmet Williams, daughter and representative of Mehmet Karamehmet, the Turkish billionaire who is Genel’s biggest shareholder, with a 23 per cent holding.
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Genel insisted that it had “full confidence” in Mr Ozgul’s ability after the vote, but said that it would “review” its pay policy in light of the rebellion.
Genel is now pinning its hopes on developing two gasfields in the Kurdish region of Iraq, which Mr Hayward said could be worth up to $2.5 billion to the company.
Genel Energy shares rose 2¼p to close on 89½p last night.