The oil giant has disclosed the figures in its annual report, Energy Voice analysed.
Remuneration for Looney, who became CEO in February 2020, was far lower than that of his predecessor Bob Dudley, whose total pay was $13.3 million in 2019.
In a year underscored by the heavy impact of the Covid-19 pandemic, BP froze bonuses and announced 10,000 job cuts worldwide.
Dudley’s pay package consisted of a core salary and benefits of $1.6 million, plus $245 000 in cash in lieu of retirement benefits, along with $486 000 in «performance shares».
The reduction in performance shares, compared to the $7.89 million Bob Dudley took during his last full year as CEO in 2019, was the main reason for the drop in pay alongside BP freezing bonuses.
These are awarded based on certain key metrics, weighted 80% toward financial performance.
Despite «strong strategic progress», financials were «weak» amid what the remuneration committee described as an «exceptional year of challenge and reinvention».The oil major said the amount reported was Mr Looney donated 20% of his salary to mental health charities.
It added that, after a tough year, «virtually all employees» are due a pay rise in 2021.
The remuneration committee said:
- To recognize the efforts of the wider workforce, virtually all employees will receive an above-market pay increase in 2021
- Large numbers of our employees received no pay adjustment in 2020 or had their increase deferred for 6 months
- Given the large reduction in headcount and all the responsibility this action places on those who remain, we agreed with management’s plan to increase salaries across-the-board, and ahead of market
The firm said emissions from its upstream oil & gas business, excluding its stake in Russian Rosneft, reduced by 9%.
Author: Allister Thomas
