BP boss Bob Dudley sees his pay slip despite double profit

BP Group Chief Executive Bob Dudley. Pic: Dominic Lipinski/PA Wire
BP Group Chief Executive Bob Dudley. Pic: Dominic Lipinski/PA Wire
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The boss of oil giant BP saw his pay slip even though the firm’s profits doubled to a five-year high.

Bob Dudley, chief executive of BP, saw his pay package drop to $14.7m last year from $15.1m in 2017.

The 63-year-old, who took the helm shortly after the 2010 deadly Deepwater Horizon spill in the Gulf of Mexico, has overseen a large expansion in the company’s production in recent years.

Mr Dudley’s wages and those of other executives in the sector have nevertheless come under growing scrutiny from investors, particularly following the 2014 collapse in oil prices.

His 2017 remuneration was revised up to $15.1m from the previously reported $13.4m due to changes in the value of BP’s shares over the period.

The drop in the 2018 package was the result of a reduced annual bonus and pension, which was partly offset by a rise in BP’s share price, the company said in its 2018 annual report.

Mr Dudley’s 2016 pay package was cut by 40 per cent after a majority of shareholders opposed the company’s pay policy.

Royal Dutch Shell CEO Ben van Beurden saw his pay package more than double to $22.8m in 2018, mainly thanks to a bonus and an incentive plan for delivering on targets.

It was the second highest pay on record for Mr van Beurden since he became CEO in 2014.

Total CEO Patrick Pouyanne, on the other hand, saw his proposed salary reduced to $3.6m from $3.26m in 2017.

After settling the vast majority of payments for the 2010 spill, totaling nearly $70bn, BP has more recently focused on growing production into the next decade, including the $10.5bn purchase of BHP Billiton’s US shale assets, BP’s largest deal in 30 years.

In 2018, BP saw profits more than double to $12.7bn. Mr Dudley said: “We now have a powerful track record of safe and reliable performance, efficient execution and capital discipline.

“And we’re doing this while growing the business – bringing more high-quality projects online, expanding marketing in the downstream and doing transformative deals such as BHP.

“Our strategy is clearly working and will serve the company and our shareholders well through the energy transition.”