BP will not pay bonuses for 2010 to the top executives whose divisions were involved in the worst-ever offshore US oil spill last year, the company said in an annual report dominated by the disaster. The London-based oil giant also said its proven oil and natural gas reserves fell 1.2 percent last year as it sold assets to pay for the spill, the bill for which it has estimated at around $41 billion.
Current chief executive Bob Dudley, former chief executive Tony Hayward and former exploration and production head Andy Inglis all missed out on cash performance bonuses which for Hayward totalled over 2 million pounds ($3.25 million) in 2009. "Remuneration decisions for 2010 were dominated by the scale and impact of the accident in the Gulf of Mexico," said Remuneration Committee chairman DeAnne Julius in the company's annual report.
"The remuneration committee shared the group chief executive's view that no bonuses should be paid on group-level results." Hayward and Inglis both left the company in October 2010. BP paid annual bonuses, however, to its chief financial officer, Bryon Grote, and to refining and marketing chief executive Iain Conn.
The two directors were paid part of their overall bonuses after their respective units met targets, but their total bonuses for 2010 were around 90 percent lower than those they received as a bonus payment the year before. Just days before the Macondo well blowout which led to the oil spill last year, some of BP's shareholders criticised its pay policies. Even so, sentiment towards that remuneration report was an improvement from the previous year when more than a third of investors voted against it.
Comments
Comments are closed for this article.