BP CEO salary slashed by 40%

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UK supermajor BP has slashed CEO Bob Dudley’s salary packed by 40% in reaction to shareholder’s lobbying against the oil giant’s generous remuneration that had been proposed by its board.
In April last year shareholder’s voted against Dudley receiving a bigger salary package and last week BP released its director’s remuneration packages, as well as the new remuneration policy it is proposing for 2017-19, when it published its annual report.
“At the 2016 AGM, we heard a clear message from shareholders on executive pay,” BP Chairman, Carl-Henric Svanberg, said.
The annual report revealed that Dudley’s total remuneration for 2016 was $11.6 million, 40% less than he received in 2015.
BP said, the remuneration committee had exercised downward discretion after considered outcomes for shareholders and subsequently reduced Bob Dudley’s 2016 remuneration by $2.2 million.
BP said the new policy for the next three years was designed to be “more transparent” and to “more clearly link pay to shareholder outcomes and delivery of BP’s strategy.”
This means that the maximum potential earning opportunity for the CEO will be reduced by $3.7 million, while achieving the maximum will be significantly more challenging.
However, the policy is up for renewal at BP’s annual general meeting in May.

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