BP Faces Shareholders Criticism Over CEO’s 20% Pay Rise

BP Faces Shareholders Criticism Over CEO’s 20% Pay Rise

BP CEO, Bob Dudley, is facing a shareholder rebellion against his 20% pay rise for 2015 — the same year that the oil company reported its worst ever annual loss, The Financial Times reported. BP is holding last-minute talks with investors in an attempt to prevent a bruising confrontation at the next company’s annual meeting.

As The Guardian wrote, a group representing individual shareholders urged members to vote against the measure during the annual general meeting. So far, BP has not ruled out changing the proposals under which Dudley’s pay increases from $16.4m in 2014 to $19.6m in 2015 — although the company does not expect to lose the vote and is likely to stand firm.

CEO’s increased salary was met with criticism as last year the oil company racked up a record $6.5b loss caused by the tumbling oil price and cut thousands of jobs. His pay rise more than doubled pension payments to $6.5m from $3m that has displeased investors, CNBC reported.

BP said last week that Dudley’s pay was based on the policy shareholders approved two years ago and that BP’s performance last year surpassed the board’s expectations in the context of plunging oil prices.

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