BG Group (LSE: BG.L) has announced they have parted company with their Chief Executive Chris Finlayson. The troubled Chief Executive is leaving the UK’s third biggest oil and gas producer after only 18 months the post and only three months after he made a now defunct output forecast. Finlayson, a 30-year veteran of Shell, was said to have lead BG Group with a much different style than that of the former long-serving Chief Executive Sir Frank Chapman- who was said to be autocratic in his own approach. However since taking office, Finlayson has had to preside over numerous profit warnings and a wild fluctuation in the BG Group share price, on top of a 37 percent slump in annual profits.
A large portion of the BG Groups problems lie with their Egyptian operations, which accounts for approximately 20 percent of the group’s production. First quarter results show production down 35 percent in these fields due to ever deteriorating reservoir performance.
Andrew Gould, BG Group’s Non-Executive Chairman, has been given the nod to take over as interim Executive Chairman, whilst a fulltime successor is sought.
In a statement Andrew Gould said: “I would like to thank Chris for his contribution to the Group over the past four years and we wish him well for the future.” However he finished with what can only be seen as a parting slant at Finlayson with “The Board felt that it was in the best interests of the Group to accept Chris’ resignation and seek fresh leadership to deliver both of these priorities.”
Chris Finlayson himself sited “personal reasons” for stepping down. He will leave his post with the minimum contractual agreement thought to be 1.3m in notice payments and pension entitlements.Last updated on 05:50PM - 05/05/14