BP boss Dudley to get pay cut after shareholder revolt
06 Apr 2017 - 22:01
London: BP chief executive Bob Dudley could see his overall pay for 2016 cut by 40 percent, following a rebellion by shareholders last year over his remuneration, the company's annual report revealed Thursday.
Dudley is due to receive a total package of $11.6 million (10.9 million euros) for his work last year, according to the annual report.
That compared with $19.6 million in 2015, when the company had posted its largest annual loss for 20 years and axed thousands of jobs worldwide.
Details of the 2015 pay deal had sparked outrage among the energy giant's shareholders, almost 60 percent of whom voted in April 2016 to reject the package in a non-binding vote.
Initially for 2016, Dudley's pay had been proposed at $13.8 million, but the company's pay committee lowered it by $2.2 million.
"After a thorough review and extensive shareholder engagement, we believe the new policy is simpler, more transparent and has strategic focus," said Ann Dowling, chairwoman of BP's remuneration committee.
One of BP's major shareholders, Royal London Asset Management (RLAM), called the overhaul of BP's pay policy a "milestone" that set an example for others.
"We applaud the BP remuneration committee for being proactive in responding to the shareholder revolt last year and see this as a milestone in the engagement between companies and shareholders," said Ashley Hamilton Claxton, corporate governance manager at RLAM.
"In particular, the committee applied discretion to override the formulaic outcome of the pay policy, which is a welcome step in the right direction."
Shareholders will vote on the new pay plan at BP's annual general meeting on May 17.