Lucrative short job Helge Lund – Aftenposten

The value of the shares he was awarded when he took BG-position for a couple of months ago, overnight nearly 6 million more worthwhile.

Lund will be sitting in the job of the year.

The price of BG’s shares rose 37 percent on London Stock Exchange since Wednesday became known that Shell buying up the British oil and gas company.

Salary package reduced

Although Lund loses his job as CEO, the “short-term commitment” in the UK prove to be very lucrative.

Lund renegotiated last December the lucrative salary package he got when he changed jobs, following protests from several large shareholders in BG.

According BGs annual report contains agreement with Lund following elements:

• Annual salary: 1.5 million pounds (18 million. kr)
• Annual pension payments: 450,000 pounds (5.4 million. million).
• Yearly bonus in the form of shares in the company for a total of 1.5-3 million pounds (18-36 million. million).
• 1.2 million shares upon joining.
• Compensation of 750,000 pounds (9 million. Million) for the sale of Statoil shares.
• Relocation Compensation: 480,000 pounds ( 5.8 million. million).

All this sums up to a maximum of 395 million, according to Dagens Næringsliv.

New bargaining

Now the maximum benefits will be substantially reduced when Lund must stop at year end.

How much Lund thus get paid for barely a year as BG chief bllir probably a question for negotiation between him and Shell.

Usually the top management of an international company that is taken over, an additional remuneration to be in the company for the takeover is completed.

Still critical Lund appointment

According to Aftenposten get lit, began talks with BG Group and Shell after Lund joined BG in February.

The British think tank High Pay Centre, which last autumn starts campaign to get Lunds pay package reduced, told Aftenposten that the Norwegian’s unenthusiastic resignation as BG Group Top shows why so high executive pay is not necessarily a good investment.

– This illustrates an important point. BG spent a lot of money to get over Lund, based on the idea that he was such a talented and visionary leader that he solely should stake out a successful future for this company and reverse the trend. But what has happened in practice is that larger market forces, such as oil prices and writedowns that sent BG Group downward course, has made the company vulnerable to takeover. It shows that these godlike industrikapteinene not determine the future of our industries, but on the contrary greater market forces beyond their control, says think tank director Luke Hildyard.

Shell pays 47 billion pounds (564 billion. Kr) for BG Group. According to plan, the acquisition be completed in the first part of next year.

Published: 08.apr. 2015 1:54 p.m.