LONDON, April 11 The shareholder rebellion
against BP's remuneration policy shrank this year, after
the oil major made progress in untangling its Russian
investments and reducing uncertainty over oil spill liabilities.
Investors representing just 5.88 percent of shares voted
against its 2012 remuneration report at a meeting in London on
Thursday - almost half the 11.79 percent that rejected the
report the previous year.
Chief Executive Bob Dudley's pay fell by a fifth last year
because of performance measures set over a three-year period
that began in 2010, the year of its disastrous Gulf of Mexico
Standard Life Investments (SLI), one of BP's largest
shareholders with 1.3 percent, attacked the company's current
pay policy for its potential to reward bosses for meeting
Three years on from the oil spill, and a month after
completing a landmark deal in Russia which is enabling BP to
return $8 billion to shareholders, SLI's criticism prompted loud
applause in the meeting but received less support than last
While BP remains in court in the United States over the
spill, it has already made some partial settlements. Investors,
buoyed by the recent sale of its stake in its Russian venture
TNK-BP, have started to price in an end to the spill
SLI has voted against BP's executive pay in seven of the
last eight years and criticised its remuneration policy for
being too complicated.
"We want to see the remuneration committee raise its game
and make significant improvements to address our concerns,"
SLI's global head of governance and stewardship Guy Jubb said.
A 5.88 percent vote against executive pay is small by the
standards of 2012 when a large number of investors in British
companies registered their disapproval during annual meetings,
an episode dubbed the 'shareholder spring'.
BP, accustomed to criticism from environmental groups, also
heard from a number of individuals and groups campaigning
against its involvement in Canada's tar sands.