LONDON (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 capitalization.
Additional reporting by Dmitry Zhdannikov in London; editing by Sofina Mirza-Reid