| LONDON, April 4
LONDON, April 4 Former chief executive Frank
Chapman and other top bosses at BG Group will get no
performance bonus for 2012 because of the weakened position of
the company, even though they met the criteria for one to be
Chapman and other top executives decided a cash bonus would
be "inappropriate" given the downgrade it made to output
forecasts and the share price fall in the final quarter of the
year, BG said in its annual report released on Thursday.
BG's new CEO Chris Finlayson, who took over from Chapman at
the end of 2012 earlier than expected due to Chapman's illness
and after a flurry of bad news for the company, will get a base
salary of £975,000 ($1.48 million) this year, plus cash in lieu
of a pension at 30 percent of base salary.
His annual incentive scheme bonus for 2013 will have a
target of 100 percent of base salary, with a maximum of 200
percent, plus share awards under the company's long term
Finlayson's base salary is lower than that of Chapman, who
was paid 1.233 million pounds in 2012. Chapman's last pay as CEO
was up 3.4 percent from 2011, but his total cash take-home will
be dramatically lower, given that he also received a 1.652
million pound bonus in 2011 and will not get one for last year.
Chapman, one of the longest serving CEOs in the industry
with 12 years at the helm, will continue to draw his salary and
other elements of his BG pay package until he retires completely
in June this year.
In February this year, BG abandoned its ambitions to become
a 1 million barrels per day oil and gas producer by 2015, and
reported a 29 percent drop in quarterly net profit after taking
stock of a series of setbacks that included project delays in
Brazil, production difficulties in Egypt, and a scaling back in
U.S. shale gas activities as prices there fell.
The decision comes amid increasing shareholder scrutiny of
executives' performance related pay.