BG Group dropped a proposed $19 million share award for new CEO Helge Lund Monday after shareholders protested the size and terms of the package.
A “significant number” of shareholders opposed the award, arguing that it fell outside of the company’s approved remuneration policy.
The performance linked award was set to be distributed over a five year period.
Lund, who takes the reigns in March, will now receive an initial share award that has a $16.65 million face value.
However, UK-based BG said that because the package is linked to performance it will likely be worth about $7.4 million.
The revisions also make 62 percent of Lund’s first year remuneration package subject to quantitative performance criteria.
“The revised package brings all elements of Mr. Lund’s remuneration within the company’s remuneration policy approved by shareholders in May 2014,” BG said.
The initial LTIP award will be granted after Lund, 52, takes his post at BG.