The pay of BP’s chief executive, Bob Dudley, jumped by almost 13% last year to $13.4m (£9.5m), close to the $14m pay package shareholders rejected two years ago.
In 2016, the oil company’s investors staged a revolt over a 20% pay rise for 2015 after BP posted its worst ever loss. Dudley’s pay was cut to $11.9m in 2016.
But the company more than doubled its profits to $6.2bn in 2017 off the back of resurgent oil prices and increased production.
BP chief exec Bob Dudley saw his pay rise 12.6% last year to $13.4mhttps://t.co/QfaeS7q3Kp pic.twitter.com/kH4LIARVuy
March 29, 2018
While that performance was largely a result of major oil-producing countries curbing production to prop up prices, it means shareholders are less likely to rebel against the pay rise atthe annual general meeting in May.
BP defended the double-digit pay increase for Dudley in its annual report, which was published on Thursday.
“The [remuneration] committee believes that these outcomes appropriately reflect the strong operational and financial performance of BP this year and over the past three years whilst demonstrating a commitment to a considered approach,” the report said.
The committee said Dudley’s pay for 2017 would have been even higher, at $17.6m, but they had used its discretion to reduce it to $13.4m.
The US executive, who has led BP since 2010, was paid a salary of $1.854m, with the bulk of his pay made up of $7.787m of performance shares.
He also received $73,000 in benefits, a pension worth $746,000, a cash bonus of $1.491m and deferred shares worth $1.491m.
Carl-Henric Svanberg, BP’s chairman, 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’s share price was up 1.6% on Thursday morning.