BG Group CEO Sees Share Package Cut By 53%

Oil and gas exploration giant BG Group has cut its incoming chief executive's pay package, originally worth up to £25m.

Helge Lund's share award has been revised downwards by some 53%, from around £10m to about £4.7m.

He will continue to receive a salary, pension and benefits package of £15m.

Last week the Institute of Directors warned that the pay deal for the new CEO was "excessive" and "inflammatory" and urged shareholders to vote against the deal.

The share award reduction now means the proposal does not have to be approved by shareholders, and is within policy guidelines formulated last May.

Mr Lund takes over BG Group in early 2015, after previously turning Norway's Statoil into a publicly traded company.

The share award turnaround comes as the price of oil continues to fall.

Brent crude is down 40% since mid-June and approaching five-year lows.

However forecourt prices have only dropped 6% during 2014, according to the AA motoring group.

Despite the downward pressure on prices, potentially increasing the use of motor vehicles, fuel sales have dropped in the last year.

The AA said October sales were down 20% on the same month last year, even though pump prices were 8p a litre cheaper.

The declining sales strike another chord of concern for the Government, as it sees reducing tax and duty receipts as a result.

Chancellor George Osborne has seen income tax revenue remain static, confounding a forecast 7% rise as the jobless count drops.

On Thursday, oil ministers from the OPEC cartel met in Vienna and were unable to agree a deal to cut production to help raise prices.

Geopolitical analysts believe key countries want to keep prices low to help force out newer supplies, such as fracking in the United States.

The US is now virtually self-reliant in oil - a status it has not had for decades.

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