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BP investors oppose $19mln CEO pay deal

Thursday, April 14, 2016 - 01:35

Shareholders voted against Chief Executive Bob Dudley's $19.4 million pay deal for 2015, a rare investor revolt reflecting outrage after the British energy company recorded its biggest annual loss. Laura Frykberg reports.

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2015 was a low year for BP. Profits at the oil giant were at the bottom of the barrel, and 5,000 jobs were lost. Perhaps it's no suprise then, that a pay packet worth over 19 million dollars for CEO Bob Dudley, had some shareholders simmering. (SOUNDBITE) (English) BP SHAREHOLDER SAYING: 'All I wanted was a little bit of constraint in the salaries of the remuneration, that's all. I think it's a bit unfair on the face of it.' (SOUNDBITE) (English) BP SHAREHOLDER SAYING: 'I don't think at the moment it's justified.' They were views shared by more than half of investors at a meeting in London. In a rare move 59 percent voted against the pricey pay packet. Economists say it's no wonder, given the 2010 oil spill disaster and the current climate. (SOUNDBITE) (English) COMMERZBANK, GLOBAL FINANCIAL ECONOMIST, PETER DIXON, SAYING: 'At a time when workers - particularly across the industrialised world, but not only restricted to those areas - are being asked to tighten their belts then it kind of sticks in the throat when the chaiman, the Chief Executives or managing directors are being offered big incentives for the work they've done.' BP had argued the remuneration reflected Dudley's strong performance in a poor environment. One that's seen oil prices drop nearly 70 percent in just under two years. But in the end it wasn't enough to satisfy shareholders. They'll no doubt be hoping their concerns don't fall on deaf ears - BP is free to ignore the vote.

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BP investors oppose $19mln CEO pay deal

Thursday, April 14, 2016 - 01:35