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IoD Boss slams BG for ‘excessive’ CEO salary

December 2, 2014 by  
Filed under Top Stories

Helge Lund, new BG Group CEO, has been offered a £25 million pay deal

Institute of Directors (IoD), a UK-based body that represents and set standards for company directors, has slammed BG Group’s decision to award a £25 million ($39.36 million) pay deal to incoming Chief Executive, Helge Lund.

Simon Walker, Director General of the Institute of Directors, said: “The Institute of Directors is always reluctant to criticise an individual company. However we do have a responsibility to criticise an action that brings the whole of British business into disrepute and threatens already fragile attitudes to corporate Britain. For that reason we state explicitly our strong opposition to BG Group’s recommended £25 million pay deal for its incoming chief executive, Helge Lund. It is excessive, inflammatory and contrary to the principles of good corporate governance.”

Lund will join BG Group in 2015 and, according to IoD, has been awarded a £12 million ‘golden hello’ in shares and the chance to earn up to £14 million a year if he achieves performance targets. This comes on the back of a three year ‘binding’ pay policy approved by BG shareholders just 6 months ago.

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