Karoon chairman in activists’ firing line over pay

Activist target Karoon Energy has been accused of sustaining an inappropriate and “flawed” executive pay scheme, compelling shareholder Sandon Capital to vote against its remuneration report at Karoon’s upcoming annual meeting.

Sandon wrote to chairman Peter Botten on Wednesday arguing that Karoon’s incentive structure had insufficient regard for shareholder value and elements of it were crudely structured such that executives were rewarded simply for making acquisitions.