The BP board is responsible for the direction and oversight of BP plc (BP) on behalf of the shareholders and is accountable to them, as owners, for all aspects of BP’s business. The BP board believes that good governance involves the clarity of roles and responsibilities, and the proper utilisation of distinct skills and processes.
Board governance principles
The board has developed and approved a set of board governance principles which set out its approach in this area. The board also reports on its corporate governance activities and performance each year in its 'Governance report’ which forms part of BP's Annual Report and Accounts The board governance principles are designed to enable the board and BP's executive management to operate within a clear governance framework. The principles describe the board's relationship with shareholders and executive management, the conduct of board affairs and the tasks and requirements for board committees.
They outline the board's focus on activities that enable it to promote shareholders' interests, including the active consideration of strategy, the monitoring of executive action and ongoing board and executive management succession. The board has developed these principles to help it fulfil its responsibilities and regularly keeps its work and performance under review. See Key downloads below to view the principles.
Remuneration is directly linked to strategy and performance, with a particular emphasis on matching rewards to results over the long-term. The remuneration policy was approved by shareholders at the 2013 AGM. 2014 was the first year that we reported the directors’ remuneration under the approved remuneration policy. See Key downloads below to view the 2014 remuneration report and the approved remuneration policy.