BG boss makes shock exit after just 16 months

 
Suzie Neuwirth
BG GROUP chief executive Chris Finlayson has resigned after just 16 months at the helm, the FTSE 100 oil and gas producer said yesterday.

BG said his departure, which takes place with immediate effect, was for personal reasons, although in the same announcement it trimmed its production guidance for its Egypt operations and warned issues in the country would continue to hit output next year.

“The board felt that it was in the best interests of the group to accept Chris’ resignation and seek fresh leadership,” said the firm in a statement.

Non-executive chairman Andrew Gould will take over as interim executive chairman, with a recruitment process for an external successor to Finlayson now underway. It is understood that Gould will be heading up the search, but there is no specific timeframe to find his replacement.

BG has recently had a revolving-door management team, replacing its chief financial officer, chief operating officer and now its chief executive officer within the past six months.

City A.M. reported last month that the firm is targeting UK redundancies as part of its plans to streamline the business in the face of dwindling profits.

“The group is reviewing its operational, investment and portfolio management plans and will not provide 2015 guidance until its full year results in February 2015,” said BG.

The firm, which unveils its first-quarter results on Thursday, declined to comment further than the statement.

Shares slumped over five per cent in early trading yesterday but recovered to close 0.09 per cent higher.