BP today published its Annual Report and Accounts (ARA) for 2017 and Annual Report on Form 20-F for the year ended December 31, 2017. The full reports are now available online at .
The ARA includes the 2017 Directors’ Remuneration Report (DRR) which details 2017 remuneration for BP’s executive and non-executive directors.
Key points from the DRR include:
- 2017 was one of the best years in BP’s recent history. For the three-year period to 2017, BP achieved the best total shareholder return (TSR) of its supermajor peer group and delivered 44% returns on UK shares.
- Executive director remuneration reflects both the strong operational and financial performance of the company as well as the new, more demanding remuneration policy, approved overwhelmingly by shareholders last year.
- BP group chief executive Bob Dudley earned $13.4 million (£9.5 million) total remuneration in 2017, 13% higher than for 2016 and 31% lower than for 2015.
- Some of Dudley’s 2017 payout arose from long-term performance shares awarded three years ago under the old policy; however, the remuneration committee used its discretion and effectively applied the more demanding new policy to those shares as well.
- This resulted in a reduction of Dudley’s 2017 remuneration by $4.2 million or 24% from $17.6 million to $13.4 million.
Carl-Henric Svanberg, BP Chairman, said: “2017 was a year which saw delivery and growth across all our businesses. This was an impressive performance from Bob Dudley and his great team, now fully into their stride. The company is in a great position to grow and has a clear strategy for the energy transition.”
Dame Ann Dowling, chair of BP’s Remuneration committee, said: “BP performed strongly in 2017 and over the past three years, generating increasing returns for our shareholders. In deciding executive pay for this period using our new policy, including our considered use of discretion, we believe we have fairly reflected BP’s performance, the experience of shareholders and wider context.”
The full 2017 ARA can now be seen online at: and the 2017 DRR can be seen at , and from page 90 of the ARA.
The 2017 DRR will be voted on at BP’s Annual General Meeting in May.