BG slices Lund’s remuneration package

LNG player BG Group said it has reduced the remuneration package for its new Chief Executive Helge Lund in response to shareholder concerns.

The revised package brings all elements ofLund’s remuneration within the company’s remuneration policy approved by shareholders in May 2014. This removes the need for shareholder approval for the conditional award of shares previously proposed for Lund, BG said in a statement.

“The conditional share award will no longer be made. Instead, Lund will be granted an initial award of shares under the company’s Long Term Incentive Plan (LTIP), with a face value equal to £10.6 million, which will be subject to company performance conditions,” according to the statement.

This revised package reduces the expected value of Lund’s initial share award from approximately £10 million to £4.7 million.

The initial LTIP award will be made after Lund starts work at BG, and will be in addition to an annual LTIP award. Lund has indicated that he still intends to hold any shares that vest to him (net of tax) for the duration of his employment with the company, BG said.

The changes mean that 62% of Lund’s remuneration package in the first year, on an expected value basis, will now be subject to quantitative company performance criteria.

BG announced the appointment of Helge Lund as Chief Executive and Executive Director on October 15, with a start date of March 2, 2015. He was previously Chief Executive of Norway’s Statoil.

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