A BRITISH oil and gas firm that supplies the UK’s energy giants has handed its
new boss a £29million pay deal.
Reading-based BG Group — once part of British Gas — has poached Helge Lund
from Norway’s state oil firm Statoil.
The 52-year-old will become one of Europe’s best paid bosses next March.
His basic salary of £1.5million will be beefed up by an extra £500,000 pumped
into his pension pot each year.
He is also in line for an annual bonus of up to £3million, long-term share
incentives worth £9million and a buyout of Statoil shares which could net
him another £3million.
But the bulk of the package is a share award worth £12million over five years
— approved by shareholders.
Mr Lund is also getting a £480,000 “relocation allowance” to help him move
from Norway to the UK.
His pay dwarfs that of former British Gas boss Cedric Brown, dubbed Cedric the
Pig in 1995 over his £475,000 salary — less than Mr Lund is getting to move
house.
Luke Hildyard, of the High Pay Centre, called the deal ridiculous and
unnecessary.
£130 cut ‘hoarded’ by bigger suppliers
By DANIEL JONES
ENERGY giants are “hoarding” hundreds of millions of pounds from
falling wholesale costs instead of passing on savings to customers, it was
claimed last night.
Experts believe families are missing out on £130 a year because firms are
worried about Labour’s price freeze if they win May’s General Election.
Mark Todd, of Energyhelpline, said: “Energy companies must be hoarding big
savings to boost profits and arm themselves with a huge contingency fund.”
Overall wholesale prices are down 22 per cent since last autumn for firms
buying energy a month in advance — while year-ahead prices have dropped
eight per cent.
After other costs, this should mean a price cut of between ten and four per
cent.
But last night firms said they buy energy up to three years ahead, and
wholesale prices now account for less than half of customers’ bills.