Paper cut

1 December 2014 By Fiona Maharg-Bravo

Investor pressure has made the UK gas firm slash a share award for CEO-elect Helge Lund. The package remains generous but needs no investor vote. A better board would have anticipated the row at the outset. That says something about BG’s culture – which still has to be addressed.

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BG cut a controversial remuneration package for incoming Chief Executive Helge Lund after a backlash from investors.

The initial share reward will have a face value of 10.6 million pounds, compared to a previous award of 12 million pounds, BG said on Dec. 1.

The expected value of the award will halve from an expected 10 million pounds to 4.7 million pounds, the company added. The new package does not require shareholder approval.

BG said 62 percent of Lund’s expected remuneration package in the first year will now be subject to the quantitative company performance targets.

The about-face came after several investors had protested against the pay package. The Institute of Directors, a UK business group, had described the initial package as “excessive, inflammatory and contrary to the principles of good corporate governance.”

At 1140 GMT, BG shares were down 2.6 percent to 876 pence per share.

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