BP shareholders gather at the Excel in Docklands today for their annual general meeting and pay for senior executives are again the sticking point.
Chief executive Bob Dudley’s £10.4million package is under scrutiny after he received a 5% pay bump while the oil giant’s annual replacement cost profits fell by 66%.
Glass Lewis and Pensions & Investment Research Consultants (PIRC), which advise institutional shareholders, both said Mr Dudley’s remuneration exceeded that of its European peers.
PIRC said the package was “excessive” and said investors should vote against it. Last year, 16% of shareholders voted against BP’s remuneration report at the AGM.
PIRC said: “The changes in CEO pay over the last five years are not considered in line with the company’s financial performance over the same period. Total CEO rewards are equivalent to over 800% of salary which is considered excessive.”
Other matters under scrutiny will be the decision by the group – which has offices at 20 Canada Square, Canary Wharf – to cut investment by £4billion this year; the continuing cost of the Deepwater Horizon spill and Shell’s £47billion takeover of BG, which has raised speculation over BP’s future.