BP chief exec will be first £1m-per-year pensioner

Lord Browne, chief executive of BP, will become Britain's first £1 million-a-year pensioner when he retires in July, the oil giant revealed today.

Although his pay package fell from £8.45 million to £7.64 million, he will also collect a £3.7 million pay-off when he leaves.

That is despite BP being forced to slash oil production forecasts earlier this year after it notched up record annual profits of £11.3 billion in 2006.

Lord Browne, who does not turn 60 for another year, has worked all his life for BP and accumulated 40 years of pension payments. That entitles him to an annual pension of at least £1,050,000. He will also be given a one-off lump sum payment of at least £1.5 million.

Browne also owns shares, long-term bonuses and share options worth more than £50 million. Browne faced a mauling in the US courts in the autumn over the fatal 2005 Texas City oil refinery explosion which killed 15.

His departure has been sullied by his desire to keep working at BP past the age of 60.

That led to a public spat with his chairman Peter Sutherland and the announcement of Browne's departure to be replaced by his protege Tony Hayward.