Two major shareholder advisor firms have endorsed BP’s (LON:BP) handling of the departure of former chief executive officer Bernard Looney.
Mr Looney stepped down in September last year following allegations he failed to disclose personal relationships with colleagues.
In December, the company’s board decided to dismiss Mr Looney without notice. As a result, the former CEO forfeited close to £40 million in remuneration.
Since Mr Looney’s departure, BP shares have underperformed against rivals Shell, Exxon and Chevron as its profits returned to pre-2022 levels.
But in reports issued ahead of BP’s annual general meeting later this month, two major shareholder advisors said they were satisfied with the handling of Looney’s departure.
“Having reviewed the processes by which these decisions were made, we believe shareholders can be reasonably satisfied with the board’s response to this matter, and do not believe further shareholder action is warranted at this time,” shareholder advisor Glass Lewis said in its report according to Reuters.
Meanwhile, shareholder advisory ISS also raised no concerns.
“As a general comment, the treatment of the former CEO’s equity awards would seem indicative of the issue having been treated seriously,” ISS said.
Reuters reported both Glass Lewis and ISS recommended investors support all of the board’s proposed articles at the company’s AGM in London on 25 April.
This included the reappointment of chairman Helge Lund and the leadership’s proposed remuneration.
BP appointed the company’s former chief financial officer Murray Auchincloss as its permanent CEO in January.
Recommended for you
