BG Group's new chief executive Helge Lund has been offered a “competitive” pay package which could see him earn up to £14m on an annual basis.
Lund, who is currently chief executive at Norwegian company Statoil, has been allocated a £1.5m base salary, fixed for the first five years of employment, a 30 per cent cash payment in lieu of pension and a short term annual cash incentive worth 100 per cent of base salary for target performance. A £480,000 relocation allowance is also included.
In addition, Lund stands to receive a conditional share award of £12m, to be earned over a five-year period, which is subject to prior shareholder approval. Investors will meet before the end of the year to vote on this.
A BG spokesman said: “The most likely yearly salary is £9m, based on the rate at which most of our executives have received bonuses.”
One analyst said a pay package such as this was necessary to attract someone of Lund’s calibre. He said: “If you are a BG shareholder you are involved in a gas company, and Helge Lund has led Statoil to some significant gains in the gas sector.”
BG Group's share price fell by just under one per cent yesterday.