BP Plc (NYSE: BP) has agreed to cut about 5 million pounds (US$6.24 million) from CEO Bob Dudley's maximum pay for the next three years in a bid to avoid a shareholder revolt, Sky News said on April 3, citing people briefed on the matter.
Sky News said that Dudley's maximum annual pay over the next three years will now be about 12.2 million pounds (US$15.22 million) including his salary, an annual bonus of 3.3 million pounds and a long-term share incentive plan award worth up to 7.4 million pounds. The previous package was worth up to 17.4 million pounds including the matching share awards.
The report said the company had decided to reduce Dudley's maximum long-term incentive plan award from seven times his 1.48 million pounds basic salary to five times.
According to the report, Dudley's annual bonus will remain constant at a maximum of 225% of his salary. The framework will also apply to other top BP directors between 2017 and 2019.
BP has seen shareholder opposition to high executive pay since last April, when a majority of investors in BP voted down the oil company's plan to pay Dudley a US$19.6 million remuneration package, reflecting outrage over the proposed remuneration after the oil company posted losses.
According to an analysis by the Equality Trust in March, BP is among the British companies with the biggest pay gap between a worker on the minimum wage and the company heads.
A BP spokesperson was not immediately available for comment.
Recommended Reading
Eni Reports Discovery Offshore Mexico in Block 9
2024-07-10 - Italian energy giant Eni SpA announced a discovery at the Yopaat-1 EXP exploration well in the offshore Mexico Block 9 of the Cuenca Salina in the Sureste Basin, which potential up to 400 MMboe in place.
E&P Highlights: July 10, 2024
2024-07-10 - Here’s a roundup of the latest E&P headlines including TotalEnergies exiting South Africa to focus on opportunities in Namibia.
CNOOC’s Bohai Bay Well Achieves High Yield
2024-07-11 - CNOOC’s Bozhong 19-6 Condensate Gas Field D1 well, the first ultra-deep well in China’s Bohai Bay, is currently producing approximately 6,300 boe/d.
Goodbye Manual Control: Vital Energy’s Automation Program Boosts Production
2024-07-12 - Production, ESP efficiency soared when the company automated decisions with AI at the edge.
Southeast Asia NatGas Projects Could Unlock $100B Boom- Rystad
2024-07-17 - Southeast Asia's offshore gas industry is set for a $100 billion boom by 2028, driven by a flurry of final investment decisions by oil and gas majors and national oil companies, according to Rystad Energy.