BP claws back $54.5 million from former CEO Bernard Looney
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BP said former CEO Bernard Looney had knowingly misled its board over personal relationships with colleagues.
PHOTO: AFP
LONDON - BP cut £32.4 million (S$54.5 million) in remuneration from former chief executive officer Bernard Looney after the British oil giant concluded that he had knowingly misled the board over personal relationships with colleagues.
BP’s board dismissed him without notice, effective Dec 13, for serious misconduct.
It said in a statement on the same day that he would receive no further salary or benefits from the dismissal date and would not be paid an annual bonus for fiscal year 2023.
The dismissal cuts short Mr Looney’s 12-month notice period after he resigned in September for failing to fully disclose details of past personal relationships with colleagues.
His abrupt departure, after less than four years at the helm, threw the company into turmoil. The board is still seeking his replacement.
BP said his remuneration package was cut by £32.4 million, with 87 per cent of that due to his resignation on Sept 12 and 10 per cent as a result of the board’s decision to dismiss him for serious misconduct. A further 3 per cent was clawed back at the discretion of the board.
“I am disappointed with the way this situation has been handled,” Mr Looney said in a statement on Dec 13.
Chairman Helge Lund is leading an investigation with the help of law firm Fairfields into Mr Looney’s undisclosed relationships to determine whether they breached company rules, company sources said earlier in December.
Clawback
The majority of the clawback – nearly £25 million – was linked to Mr Looney losing unvested share awards between 2021 and 2025.
He will be required to repay 50 per cent of the cash portion of his 2022 cash bonus, around £420,000.
His resignation came after the board investigated similar allegations against him in May 2022, following which he gave the board assurances over his past and future conduct.
“Following careful consideration, the board has concluded that, in providing inaccurate and incomplete assurances in July 2022, Mr Looney knowingly misled the board,” BP said in its statement.
His pay package reached US$12 million (S$16 million) in 2022 after surging energy prices generated record profits for oil and gas companies.
Following his resignation, BP named Mr Murray Auchincloss, who headed finances under Mr Looney, as interim CEO.
The board is expected to decide on a permanent CEO in the first quarter of 2024, sources said earlier in December.
Other boards at top corporations have cut executive pay in the past over misconduct.
Wells Fargo stripped CEO John Stumpf of US$41 million in stock awards in 2016 after a sales practices scandal.
Two years ago, former McDonald’s CEO Steve Easterbrook agreed to return compensation worth US$105 million in equity awards and cash to settle a lawsuit over alleged lies about affairs.
REUTERS
