A business group has warned BP not to “shrug off” one of the largest shareholder revolts over executive pay in the UK.
The 59% vote against chief executive Bob Dudley’s remuneration package is larger than many votes against cast at AGMs during the so-called “shareholder spring” four years ago.
Then, bosses of both Trinity Mirror and AstraZeneca resigned as a result of upset over spiralling executive remuneration. Sly Bailey, chief executive of the newspaper publisher resigned ahead of a meeting where 45% of shareholders voted against her £1.7million pay.
In the oil and gas sector, BP’s rival Shell saw 59% of voters rejecting then chief executive Jeroen van der Veer’s £91.million package at its AGM in 2009.
Simon Walker, Director General of the Institute of Directors (IoD), said BP’s response to yesterday’s vote would “determine the future of corporate governance in the UK”.
He added: “The shareholders have spoken, and BP cannot shrug of this significant expression of disapproval with the CEO’s pay package.
“British boards are now in the last chance saloon, if the will of shareholders in cases like this is ignored, it will only be a matter of time before the Government introduces tougher regulations on executive pay.”
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