New Zealand Oil and Gas' shareholders have approved a deal for the company's new chief executive to acquire three million shares.
Andrew Knight joined the business as a board member in 2008 and became the managing director and chief executive of the listed oil and gas explorer in December.
About a dozen shareholders attended a special meeting in Wellington on Monday to approve Mr Knight purchasing the shares as part of his contract.
The New Zealand Shareholders Association has questioned elements of the deal including the amount of shares on offer.
At the meeting, New Zealand Oil and Gas independent director Peter Griffiths assured shareholders the deal is fair.
"For him to make any significant value out of that, he has to create a significant amount of value for everybody else," he said.
About 80% of shareholders approved the share purchase.
Mr Knight has the opportunity to pay one cent a share, and over the next five years pay a further 99 cents per share.