BG Group CEO Helge Lund may walk away with a $43 million golden goodbye as the UK-based company prepares to merge with Royal Dutch Shell just months after Lund took his post.
Lund is entitled to liquidated damages equivalent to one year of his gross salary and 30 percent of his base pay, Bloomberg Business said.
His total compensation package, including long term incentive share awards, could hit $43 million by the time Shell’s acquisition of BG closes early next year.
BG Group’s remuneration committee will have the final say on how large Lund’s exit package will be, the London Evening Standard said.
Lund, 52, joined BG Group in February after leading Norway’s Statoil for 10 years.
He will earn a $2.4 million per year base salary at BG that could grow to as much as $14.2 million through various incentive programs.
Shell CEO Ben van Beurden said in a conference call that Lund will most likely leave his post once the acquisition is complete.
“The transaction will take time to complete, during which my team and I will remain committed to BG and our shareholders, and to safely delivering our 2015 business plan,” Lund told Bloomberg.
Lund has not commented on what he plans to do following his potential exit from BG Group.
Royal Dutch Shell agreed Wednesday to acquire UK-based BG Group for about $70 billion in cash and shares.
BG shareholders will receive 383 pence in cash and 0.4454 Shell B shares per BG share, a 52 percent premium over the company’s closing price on April 7.