Last April BP’s shareholders voted against the hefty salary package proposed by the board for the CEO Bob Dudley.
Following reports earlier this week of a reduced pay package for the oil giant’s boss, BP on Thursday published its annual report for 2016, which includes details on BP directors’ remuneration packages as well as the new remuneration policy that BP is proposing for 2017-2019.
“At the 2016 AGM, we heard a clear message from shareholders on executive pay,” BP Chairman, Carl-Henric Svanberg, said.
According to the annual report, Dudley’s total remuneration for 2016 was $11.6 million, which is 40% lower than received for 2015.
BP said that, in reaching its final decision, the remuneration committee considered outcomes for shareholders and exercised downward discretion, which reduced Bob Dudley’s 2016 remuneration by $2.2 million.
The oil firm noted that the new policy for the next three years was designed to be “more transparent” and to “more clearly link pay to shareholder outcomes and delivery of BP’s strategy.”
As a result of the proposed new policy, the maximum potential opportunity for the group CEO will be reduced by $3.7 million, and achieving this maximum will also be significantly more challenging, BP said.
The policy is up for renewal at BP’s annual general meeting in May.