BG Group cuts bonuses for top bosses

BG Group has axed executive bonuses after the oil and explorer reported a drop in profits.

Former Chief Executive Officer Frank Chapman and other top bosses will go without a performance bonus for 2012 due to the company's weakened position, according the group's annual report on Thursday.

In February the group posted a 29% drop in quarterly net profits following a series of setbacks including project delays and a scaling back in US shale gas activities.

The firm also let go of hopes of becoming a one million barrel a day oil and gas producer by 2015.

Chapman and his colleagues have decided that cash bonus would be inappropriate given the downgrade the downgrade the company made to output forecasts and the share price fall in the final quarter of the year.

Chris Finlayson, who took over as Chief Executive last year, will received a base salary of £975,000 this year, plus cash in lieu of a pension at 30% of base salary.

Chapman received £1.23m in 2012 and will continue to draw his salary until he retires completely in June.

RD