News that Helge Lund’s pay award is to be reduced is welcome, but the sums of money involved remain astonishing
Commenting on news that the pay package for incoming BG Group Chief Executive Helge Lund has been reduced, High Pay Centre Deputy Director Luke Hildyard said:
It would be churlish not to welcome today’s news, but to any normal person the sums of money involved still sound rather astonishing. Following initial grants of about £6 million, Lund could receive annual pay worth up to around £14 million. The fact that BG Group think this represents a fairer, more modest pay package says a lot about how far removed big business has become from reality.
It is heartening to see shareholders challenge the most extreme executive pay deals, but with CEO pay at Britain’s biggest companies having grown to 175 times the salary of the average UK worker, much more needs to be done to make top pay fairer and more proportionate across the board.
Notes to editors: The High Pay Centre is an independent think-tank set up to examine corporate governance and pay at the top of the income distribution. We carry out research aimed at developing a better understanding of top rewards, company accountability and business performance. For more information visit www.highpaycentre.org
Contact details – Luke Hildyard – T: 07859 015543 E: luke.hildyard@highpaycentre.org