The BG Group Board has announced revisions to the remuneration package for its new Chief Executive, Helge Lund, following concerns from BG Group shareholders.
The revised package brings all elements of Mr Lund’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 Mr Lund.
The conditional share award will no longer be made. Instead, Mr 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.
These conditions are expected to comprise a combination of relative Total Shareholder Return, cash flow and capital efficiency measures. Any changes made to the structure of the LTIP will remain within the company’s remuneration policy and the company will consult further with shareholders before they are finalised.
This revised package reduces the expected value of Mr Lund’s initial share award from approximately £10 million to approximately £4.7 million.
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/01122014/bg-group-revises-remuneration-package-1887/