An internal memo sent to BP senior staff denies its decision over forfeited share, salary and bonus payments to former CEO Bernard Looney is overly punitive.
The memo, seen by the Financial Times, includes eight question-and-answer points, one of which is titled: “Has the board been unduly harsh in how it has treated Bernard?”
In response, it suggests that the “great majority” of the pay forfeiture “came as a result of his own decision to resign with immediate effect”.
Mr Looney resigned in September after allegations around personal relationships with colleagues and misleading the BP board.
BP (LON:BP) announced the result of an investigation on Wednesday, finding the former boss had committed “serious misconduct” in his failure to fully disclose these relationships to the board.
Of the headline £32.4m potential remuneration, 87% was automatically forfeited as a result of his resignation decision, it noted this week.
The total covers unvested share awards – which will lapse in full – as part of BP’s Executive Directors’ Incentive Plan for years through to 2025, with a potential value of up to £24.8m.
The energy giant confirmed he would receive no further salary, pension allowance or benefits and will not be paid any annual bonus for 2023, while the company will claw back nearly £1m.
The FT suggested the nature of the document highlights potential “unease” in the company at the abruptness of Mr Looney’s departure and its decision to claw back funds.
“The board decided that when Bernard gave assurances around his past relationships with colleagues, he had given in inaccurate and incomplete information and knowingly misled the board” the internal memo continued.
“The board decided that this amounted to serious misconduct.”
Beyond misconduct, the findings of the investigation have not been made public. The memo indicates any further disclosure of this is unlikely, beyond more general “themes and lessons” learned from the process.
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