BP’s Pay Revelation: New CEO Receives £8 Million Package in 2023
BP’s new chief executive, Murray Auchincloss, received a pay package exceeding £8 million for the past year. Auchincloss initially assumed the role on an interim basis in September and was later confirmed as the CEO in January. The campaign group Global Witness criticized his pay, emphasizing the broader issues within the energy system. Auchincloss succeeded Bernard Looney, who left abruptly amid a review of his relationships with colleagues.
Auchincloss’s annual pay comprises a salary of £1.02 million, a bonus of £1.8 million, share-based rewards totaling £4.6 million, and other benefits. Before becoming CEO, Auchincloss served as BP’s chief financial officer. The substantial pay package comes when executive compensation, particularly in the energy sector, faces scrutiny from various quarters.
Bernard Looney, Auchincloss’s predecessor, received compensation of over £10 million in 2022. However, he was required to repay BP £1.8 million last year after leaving the company under controversial circumstances. Looney, who joined BP in 1991, forfeited up to £32.4 million in total, including nearly £25 million in long-term share awards, as a consequence of his departure. BP accused him of “knowingly misleading” the board about his relationships.
In 2023, BP reported a full-year profit of £13.8 billion (£10.7 billion), a significant decrease from the record of $27.7 billion in 2022. Soaring oil prices drove the previous year’s exceptional profit amid the global economic recovery and Russia’s invasion of Ukraine. While the profit dropped substantially, the 2022 figure still represented BP’s second-highest profit in a decade.
Global Witness criticized BP for rewarding Auchincloss with a multimillion-pound pay package, describing it as a “fat cat pat on the back.” The group accused BP of benefiting significantly from Russia’s war in Ukraine while many people are struggling financially. The debate over executive pay and corporate responsibility remains a focal point, with advocacy groups pushing for greater transparency and fairness in remuneration practices.
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