Investors have been particularly angered by the complexity of Dudley’s pay: his cash bonus has six performance measures and his long-term incentive plan has five. Sharesoc has said Dudley and other top board directors can claim maximum bonuses without hitting all their targets.
“BP as a business is going in the right direction and we are supportive of management’s strategy,” said Aberdeen. “However, remuneration awards seem overly complex and need to be simplified. We’re sure the company will take note of shareholders feedback.”
Thursday’s vote is non-binding, meaning BP can still push through the pay deal even if it is voted against by a majority of investors. However, a big “no” vote will be hugely embarrassing.
BP said: “[Management’s] remuneration is primarily based on true underlying performance, not factors over which the executives have no control.
BP’s is likely to be the first protest vote of AGM season, which this week also sees Rio Tinto and Persimmon face investors.
