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BP cuts CEO pay package after shareholder backlash

Thursday, April 06, 2017 - 01:44

BP has cut Chief Executive Bob Dudley's 2016 pay package by 40 percent to $11.6 million, the latest British bluechip company to rein in executive pay after a wave of shareholder revolts. David Pollard reports.

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In big oil's boardrooms, money talks. But for Bob Dudley of BP it's gone a little quieter. The chief executive seeing his salary slashed - amid a shareholder revolt. Over his pay rising when profits have been falling into the red. (SOUNDBITE) (English) LCG SENIOR ANALYST, JASPER LAWLER, SAYING: "Obviously since the Deepwater Horizon scandal, also with the drop in the oil price, BP shares have been hit pretty hard, and there hasn't been much signs of a recovery yet." The Gulf of Mexico explosion in 2010 left BP with a bill of 55 billion dollars. Low oil prices since pushing BP to a 6.5 billion dollar loss in 2015. Dudley was brought in to clean up after the Deepwater disaster. His pay will now be cut by 40 per cent. Although he will still earn over eleven and half million dollars a year - far outstripping his peers at Total and Shell. (SOUNDBITE) (English) HEAD OF CORPORATE DEVELOPMENT, 7IM, JUSTIN URQUHART STEWART, SAYING: "There is a continuing theme, and I think quite rightly a continuing theme, that executive performance should be tied absolutely and directly to the success of the business. That doesn't mean necessarily its profitability. The success could be the recovery from a very bad position, as Bob Dudley of BP had to try and manage as well and he did it very successfully indeed. But it is all about performance and longer-term performance of that business." Dudley's not the first. Glaxo's incoming boss Emma Walmsley is to get a quarter less than her predecessor. Last week, Reckitt Benckiser chief Rakesh Kapoor saw his pay package cut by over a third. Amid a new mood of shareholder activism and public disapproval, for some fat cats, a little less cream ... Though - with FTSE 100 chief execs still averaging an estimated five and half million pounds each in 2015 - the saucer is far from dry yet.

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BP cuts CEO pay package after shareholder backlash

Thursday, April 06, 2017 - 01:44