Messy here in the UK over the proposed compensation package of the proposed new CEO of BG Group Plc, Helge Lund, who otherwise appears ready to move down from Norway's state owned Statoil to join BG. The pay package is believed to be valued around £25m which appears rich to many shareholder representatives, such as Glass Lewis (acting as advisor) and Railpen.
On the other side of the argument is BG Group itself: “We believe Helge Lund is the right person to lead BG Group. His proposed remuneration is competitive in the international oil and gas industry. The shareholder vote on Helge Lund’s pay is in line with the letter and spirit of corporate governance legislation.” An interesting test case for shareholder voice going forward in compensation arrangements.
Beyond the infighting itself, I am worried by the apparent lack of leadership at the top while this is battled out in the press. Distractions to board monitoring and oversight can be a risk during episodes like this one at BG Group. For full transparency, I own shares in BG Group Pc and like its business model, notwithstanding material management changes and turnover.
See this link for more information: http://www.theguardian.com/business/2014/nov/28/bg-group-shareholder-revolt-pay-deal-new-boss-helge-lund-oil
Beyond the infighting itself, I am worried by the apparent lack of leadership at the top while this is battled out in the press. Distractions to board monitoring and oversight can be a risk during episodes like this one at BG Group. For full transparency, I own shares in BG Group Pc and like its business model, notwithstanding material management changes and turnover.
See this link for more information: http://www.theguardian.com/business/2014/nov/28/bg-group-shareholder-revolt-pay-deal-new-boss-helge-lund-oil
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