A £2.5M shares windfall for the founder of oil explorer Cairn Energy was withdrawn by the company yesterday amid shareholder pressure.

Sir Bill Gammell, a former Scottish international rugby player, was due to receive the options as reward for helping to bring about the company’s £3.5bn sale of its Indian operations last year.

A week before shareholders were to vote on the payment, Edinburgh-based Cairn said it had pulled the resolution in the wake of discussions with several institutions. It now plans further talks with shareholders.

The move comes a day after Business Secretary Vince Cable outlined plans to address the growing controversy over executive pay, such as a shareholder vote on remuneration policies.

Sir Bill founded the business in the early 1980s and was chief executive from the company’s stock market listing in 1988 until June last year, when he became non-executive chairman.

Explaining its decision to award the shares, Cairn told shareholders that Sir Bill was involved in “extensive and rigorous negotiation” to bring about the Indian sale to Vedanta Resources.

The disposal will generate a £2.5bn return to shareholders, which will still be the subject of a vote on Monday.