After 10 years at the helm of Statoil, the $77 billion Norwegian multinational oil and gas company, Helge Lund has resigned today with immediate effect. He will be moving on to assume the CEO position at BG Group.
“I could have continued for a period, but there is a time for everything. Renewal is important, both for Statoil and for me. I came to the conclusion that the time was right for a change. I have both the motivation and energy to take on a new leadership challenge, and found this opportunity to be the right one,” says Helge Lund.
“BG Group is a Company with a strong set of assets and opportunities. I look forward to joining this organisation and working with BG’s people to develop the Company’s full potential,” Lund added.
Former executive vice president and CFO Eldar Sætre will assume the role of interim CEO while a successor is found to Mr. Lund. With this new role, Saetre’s base pay, not including variable pay or long term incentives, will increase from 3.5 million NOK to 5.7 million NOK (USD $861,000).
Statoil notes they plan to look external to the company for a successor to Mr. Lund.
The principal terms of Helge Lund’s employment contract with BG Group are as follows:
- A base salary of £1.5 million, fixed for the first five years of employment;
- A 30% cash payment in lieu of pension;
- A short term annual cash incentive worth 100% of base salary for target performance with a maximum payment of 200% of base salary;
- An annual LTIP grant with a face value on award of 6 times salary;
- A one-off relocation allowance up to a maximum net value of £480,000;
- A 12 month notice period, with a right for BG Group to make a payment in lieu of notice equal to 130% of base salary on termination of the contract (being 12 months’ salary and 30% pension payment); and
- A buy-out of unvested variable pay in BG shares up to a maximum of £3 million.