BP shareholders stage revolt against CEOs pay

Oil major BP was given a bloody nose by its shareholders today as chief executive Bob Dudley’s controversial $19.6 million (£14 million) pay deal was voted down by investors.

The figures showed 59% of shareholders voting against the firm’s remuneration report in protest at Dudley’s 20% pay rise, in a year in which BP’s shares have fallen 25%.

The vote is non-binding but a major embarrassment for the company ahead of a binding vote on BP’s pay policy next year.

BP chairman Carl-Henric Svanberg said the oil major had had an “outstanding” year but acknowledged “real concerns” among investors over pay. He told the BP annual meeting: “We have always judged executive performance not on the price of oil or bottom line profit but on measures that are clearly within management’s control. And, from that perspective, the board has concluded that it has been an outstanding year. The pay reflects this and it is consistent with our policy.

"All investors we have spoken to recognise the significant operational achievements and the major role that Bob Dudley and Brian Gilvary have played in achieving BP’s transformation.”

He said: “On remuneration, the shareholders’ reactions are very strong. They are seeking change in the way we should approach this in the future. But let me be clear. We hear you. We will sit down with our largest shareholders to make sure we understand their concerns and return to seek your support for a renewed policy.”