BP more than tripled CEO Dudley's total pay last year

Thu Mar 6, 2014 9:44am EST

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By David Sheppard and Peg Mackey
    LONDON, March 6 (Reuters) - Oil and gas major BP Plc 
more than tripled Chief Executive Bob Dudley's pay last year,
the firm's annual report showed on Thursday, with cash and
performance-related bonuses taking his total remuneration to
$8.7 million.
    The payout came as the CEO works to right the course of BP
following the 2010 Gulf of Mexico oil spill and streamline the
business, returning cash to shareholders.
    Dudley was awarded a cash bonus of $2.3 million and shares
worth $4.5 million in 2013, the report showed, on top of his
base salary of $1.8 million. That $8.7 million total compares
with $2.6 million in 2012.
    "BP has made strong progress over the past three years under
Bob Dudley's leadership, particularly in areas such as safety,
operations and building for the future through reserve
replacement, and his remuneration reflects this," said a BP
spokesman.
    "The great majority of his potential pay is directly
dependent on BP's performance in areas essential both to the
delivery of the company's strategy and to the long-term
interests of its shareholders."  
    Criteria for the performance-related scheme were set out in
2010, when Dudley replaced Tony Hayward as CEO, and the shares
awarded to the BP chief are due to vest for the first time this
year. Dudley would have been paid far more through the
performance scheme if BP's shareholder returns had been higher.
    The share price remains below the level it first rebounded
to in 2011, as long-running lawsuits related to the Gulf of
Mexico spill have sapped BP's performance, even as Dudley moves
to reshape the company.
    Dudley's pay is still below some other CEO's at rival oil
and gas majors. Exxon Mobil CEO Rex Tillerson was paid a
total of $40 million in 2012, according to the latest figures
available. 
    Based on the current share price BP is valued at $90.4
billion compared to Exxon's $405.3 billion market
capitalisation.
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