BP today published its 2016 Annual Report and Accounts (2016 ARA) and 2016 Sustainability Report. The reports contain detailed information on BP’s financial and non-financial performance, progress and activities in 2016 and on the Group’s strategy.
The 2016 ARA includes the 2016 Directors Remuneration Report (DRR) which sets out 2016 remuneration for BP’s directors and describes the new remuneration policy that BP is proposing for 2017-19. Key points from the DRR include:
- BP Group Chief Executive Bob Dudley’s total remuneration for 2016 was $11.6 million, 40% lower than received for 2015.
- In reaching their final decisions, BP’s remuneration committee considered results from the current remuneration policy alongside outcomes for shareholders, and exercised downward discretion. This use of discretion reduced Bob Dudley’s 2016 remuneration by $2.2 million.
New remuneration policy:
- The proposed policy is designed to be simpler and more transparent, to more clearly link pay to shareholder outcomes and delivery of BP’s strategy, and to lead to lower levels of reward.
- The policy includes a lower ‘on-target’ annual bonus, more challenging stretch targets to achieve maximum annual bonus, and material reductions in the maximum longer-term incentives available to executive directors.
- As a result, the maximum potential opportunity for the Group Chief Executive will be reduced by $3.7 million, and achieving this maximum will also be significantly more challenging.
Professor Dame Ann Dowling, chair of the remuneration committee, said: “After a thorough review and extensive shareholder engagement, we believe the new policy is simpler, more transparent and has strategic focus.”
The 2016 DRR and the proposed new policy will be voted on at BP’s Annual General Meeting in May.
The full 2016 ARA can now be seen online at: www.bp.com/annualreport; the 2016 DRR can be seen at www.bp.com/remuneration, and on pages 80-110 of the 2016 ARA; and the 2016 Sustainability Report can be seen at www.bp.com/sustainability.
BP press office, London: +44 (0)20 7496 4076, email@example.com