BG slashes new CEO's pay package after shareholder revolt

BG slashes new CEO's pay package after shareholder revolt
Helge Lund is expected to take over at the helm of Britain's third-biggest energy firm on March 2.

LONDON - BG Group has reduced the remuneration package for its incoming chief executive Helge Lund following one of Britain's biggest shareholder revolts in recent years, sending its shares down around 4 per cent.

Ex-Statoil Chief Executive Lund, who is expected to take over at the helm of Britain's third-biggest energy firm on March 2, will see his share award shrink from around 10 million pounds to 4.7 million pounds, after investors complained about plans to sidestep the company's usual remuneration policy.

"The company today announces revisions to the remuneration package for its new chief executive, Mr Lund," BG Group said in a statement on Monday, adding that a "significant" number of shareholders had complained about the special remuneration arrangements.

Shares in BG were trading down 3.6 per cent at 0821 GMT.

As well as a reduced share award, Lund's long-term incentive payments will also be more closely linked to the performance of the company than BG's initial proposal, the company said.

Lund, who in 10 years transformed Norway's once domestic-focused state oil firm into a $77 billion international major, played an active role in revising his remuneration package, BG said, indicating he is content with the changes made.

The energy company had scheduled a general meeting for Dec. 15 to vote on the share award proposal that has now been withdrawn.

A spokesman said the meeting would still take place but was expected to be immediately adjourned.

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