BP claws back $40 million from former CEO Looney
Reuters
Published Dec 13, 2023 16:52
Updated Dec 14, 2023 11:06
By Ron Bousso and Pushkala Aripaka
LONDON (Reuters) - BP (LON:BP) cut over $40 million in remuneration from former CEO Bernard Looney after the British oil giant concluded he had knowingly misled the board over personal relationships with colleagues.
BP's board dismissed Looney without notice effective Dec. 13 for serious misconduct and said in a statement on Wednesday he would receive no further salary or benefits from the dismissal date, and would not be paid an annual bonus for fiscal 2023.
The dismissal cuts short Looney's 12-month notice period after he resigned in September for failing to fully disclose details of past personal relationships with colleagues.
Looney's abrupt departure, after less then four years at the helm, threw the company into turmoil. The board is still seeking his replacement.
BP said Looney's remuneration package was cut by 32.4 million pounds ($40.53 million), with 87% of that due to his resignation on Sept. 12, 10% as a result of the board's decision to dismiss Looney for serious misconduct, and a further 3% was clawed back at the discretion of the board.
"I am disappointed with the way this situation has been handled," Looney said in a statement on Wednesday.
Chairman Helge Lund is leading an investigation with the help of law firm Fairfields into Looney's undisclosed relationships to determine whether they breached company rules, company sources told Reuters earlier this month.
CLAWBACK
The majority of the value, nearly 25 million pounds, was linked to Looney losing unvested share awards between 2021 and 2025.
Looney will also be required to repay 50% of the cash portion of his 2022 cash bonus, around 420,000 pounds.
Looney's resignation came after the board investigated similar allegations against him in May 2022, following which Looney 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 a statement on Wednesday.
Looney's pay package reached around $12 million in 2022 after surging energy prices generated record profits for oil and gas companies.
Following Looney's resignation, BP named Murray Auchincloss, who headed finances under Looney, as interim CEO.
The board is expected to decide on a permanent CEO in the first quarter of 2024, sources told Reuters earlier this month.
Other boards at top corporations have cut executive pay in the past over misconduct.
Wells Fargo (NYSE:WFC) stripped chief executive John Stumpf of $41 million in stock awards in 2016 after a sales practices scandal.
Get The App
Two years ago, McDonald's former CEO Steve Easterbrook agreed to return compensation worth $105 million in equity awards and cash to settle a lawsuit over alleged lies about affairs.
($1 = 0.7983 pounds)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.