A North Sea union boss lashed out last night after it emerged BP chief executive Bob Dudley’s pay package for 2017 soared by more than £1million to £9.5million.
Mr Dudley’s total remuneration was up by 13% on 2016 and the figure could have been a lot higher. His pay deal would have come in at £12.5million but a new company policy on bosses’ pay meant the planned increase was reduced.
The final settlement included his £1.3million salary, which was unchanged from the year before.
He also received a long-term performance-related shares windfall totalling more than £5.2million, and an annual bonus worth more than £2million in cash and shares.
BP recently reported pre-tax profits of £5.14billion for 2017, against losses of £1.64billion the year before.
Revenue for last year came in at £175billion, up from £133billion in 2016 as the energy giant reaped the rewards of higher oil prices.
A new “more demanding” pay policy approved by shareholders last year aims to “deliver reduced levels of reward”.
But Jake Molloy, regional organiser of the RMT union in Aberdeen, said Mr Dudley’s revised deal sent out the wrong message to a sector still grappling with its recent downturn.
“That’s not going to sit well with offshore workers,” Mr Molloy said, adding: “Everybody is being told we have to make a sacrifice, that we have to address our inflated sector that’s costing the industry, while directors are paid sums that are obscene.”
Explaining the pay policy in BP’s 2017 annual report, remuneration committee chairman Dame Ann Dowling said: “The outcome for executive directors, representing an increase on 2016 but moderated by discretion, fairly reflects management’s performance.”
Recommended for you
