The incoming CEO’s salary package will now fit within the confines of a binding pay policy agreed to by BG shareholders in May.

BG came under fire over its initial intention to grant Lund a £25 million ($A46.3 million) pay deal, which consisted of what the UK Institute of Directors called a £12 million “golden hello” in shares when he joined the company in 2015, plus a chance to earn up to £14 million if he achieved certain performance targets.

“There is no doubt that Mr Lund is a talented chief executive, but the pay package and the decision making process behind this is wrong,” IoD director general Simon Walker said last week.

“It will damage the legitimacy and integrity of corporate Britain as a whole by seeking to unpick binding votes cast by the owners of the company.

“The proposal is excessive in the context of BG's size and sector and relies on equivocal performance conditions. It rips up the remuneration paper shareholders have only recently endorsed.”

Many shareholders were quoted by the media on their dismay at the pay package, with 0.6% shareholder Royal London Asset Management reportedly calling for fresh talks to avert a shareholder rebellion.

The now reduced package will bring all elements of Lund’s remunerations within the policy agreed to in May, negating the need for shareholder approval for the conditional award of shares previously proposed for Lund.

The conditional share award will no longer be made, with BG instead intending to grant an initial award of shares under its long-term incentive plan with a face value of £10.6 million subject to performance conditions.

This revised package reduced Lund’s initial share award from £10 million to about £4.7 million.

Lund’s base salary will now be £1.5 million per annum, fixed for five years.

Lund has waived his right not to join the company and has indicated that he still intends to hold any shares vested to him for the duration of his employment.

IoD’s Walker applauded the BG decision, saying the remuneration now better reflected BG’s means.

“BG Group has listened to the concerns of its shareholders and the Institute of Directors applauds the revisions to its CEO’s proposed remuneration,” he said.

“Mr Lund’s pay now conforms with the policy guidelines agreed by shareholders in May and is subject to quantifiable performance targets.

“While substantial, the total remuneration is reduced and now falls within proper limits for a company of BG’s size and international importance.

“We continue to welcome Helge Lund’s appointment and wish him and BG well in the challenges they face.”