Saturday 21 April 2018

BP’s Bob Dudley enjoys pay rise to take home £9.5 million

Mr Dudley’s $13.4 million award compares to $11.9 million in 2016.

FTSE 100 photos
FTSE 100 photos

By Ravender Sembhy, Press Association City Editor

BP boss Bob Dudley has seen his pay rise 13% to 13.4 million dollars (£9.5 million) after a year in which the energy giant doubled profits off the back of rising oil prices.

The group’s annual report shows Mr Dudley in 2017 took home a 1.85-million-dollar salary, an annual bonus of 1.49 million and 7.78 million dollars in performance shares.

However, his total take home pay could have been much higher at $17.6 million had BP’s remuneration committee not “used its discretion” and applied a more demanding new policy to his share award early.

  • $1.85m salary
  • $1.49m bonus
  • $7.78m in performance shares

It follows shareholder anger at Mr Dudley’s pay in 2015 when almost 60% of BP shareholders voted against a 20% pay hike for the chief executive.

The group’s annual report shows Mr Dudley in 2017 took home a 1.85-million-dollar salary, an annual bonus of 1.49 million and 7.78 million dollars in performance shares.

The oil giant was then forced to propose a new “simpler and more transparent” pay deal that would mean “lower levels of reward” as it looked to fend off further investor revolts.

Mr Dudley’s 13.4-million-dollar award compares to 11.9 million dollars in 2016.

ipanews_c8d0cb12-1078-45c5-b550-61fb4b5905c0_embedded234815321
BP profits

Dame Ann Dowling, chair of BP’s remuneration committee, said: “BP performed strongly in 2017 and over the past three years, generating increasing returns for our shareholders.

“In deciding executive pay for this period using our new policy, including our considered use of discretion, we believe we have fairly reflected BP’s performance, the experience of shareholders and wider context.”

In February BP cheered one of the strongest years in the company’s recent history after a hike in the cost of crude helped annual profits more than double.

The energy giant saw underlying replacement cost profit – BP’s preferred income measure – soar to 6.2 billion dollars (£4.4bn) for 2017, up from 2.6 billion dollars (£1.9bn) the year before.

BP is among a string of oil majors benefiting from climbing prices, having seen Brent crude hit 70 dollars per barrel in January – its highest level in more than three years.

Chairman Carl-Henric Svanberg said: “2017 was a year which saw delivery and growth across all our businesses.

“This was an impressive performance from Bob Dudley and his great team, now fully into their stride.

“The company is in a great position to grow and has a clear strategy for the energy transition.”

Press Association

Today's news headlines, directly to your inbox every morning.

Editors Choice

Also in World News