Daily Management Review

Shareholders’ Turn Down The Proposal Of Pay Upgrade At BP


The chief executive at BP does not have the shareholders’ support in hiking his pay.

Shareholders’ Turn Down The Proposal Of Pay Upgrade At BP
The shareholders of BP are against the proposal that awards a pay of “£13.8m” to its Chief Executive, Bob Dudley, just following a “year of huge losses”. Moreover, the oil giant is urging the major shareholders to come up with a “new proposal”.
After the “annual general meeting” of the FTSE100 group took place, only “40.89%” of the investors were in accord with the “remuneration package” of Bob Dudley.  Even though the investors who were contacted by the board of BP recognised the achievements attained by the operations of the executive board, in the chairman Carl-Henric Svanberg’s words:
"...they wanted a change in the way we should approach this in the future".
"We hear you. We will sit down with our largest shareholders to make sure we understand their concerns and return to seek your support for a renewed policy.”
In fact, the stress made by the Swede show that the performance of the BP executives was scrutinised “not on the price of oil or bottom line profit but on measures that are clearly within management’s control”, which is being considered as “outstanding”.
Furthermore, Svanberg added:
"We know that the dividend is important to you, our shareholders. Our goal is to maintain the dividend but at the same time we must secure the future by investing wisely”.
"Be assured that we keep this balance under regular review. Should the oil price remain lower, longer than expected, we will need to revisit our financial framework."