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BP’s CEO Murray Auchicloss’ salary fell 30% to £5.36 million last year as the struggling oil major failed to meet key profit and operational targets.
Although Auchicloss’ base salary had not changed at £1.55 million in 2024, his equity awards fell to £2.75 million from £4.36 million a year ago, after the company missed its revenue, cash flow, reliability and energy transition targets.
Last month, BP torn off its five-year-old strategy and to become a major green energy company, Auchicloss instead focused on oil and gas, pledging to sell $2 billion in assets over the next two years.
BP said it will reset its strategy and reduce renewable energy spending by 70%, and will now remove recently introduced energy transition targets from this fiscal year’s bonus calculations.
The oil company is under pressure from activist investor Elliott Management, who is seeking dramatic action to build a nearly 5% economic profit in BP and reverse long-standing performance.
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In its annual report released Thursday, BP said it had asked consultants to independent board evaluations to conduct an annual board performance review conducted internally the previous year.
After reviewing reports from the IBE, founded by Ffion Hague, author and partner of former Conservative leader William Hague, BP said it will take action against the board and senior management succession plan.
The group also said it will focus on ensuring “a culture in which members of the leadership team consider performance delivery and capital allocation.”
In his annual report of BP Chair Helge Lund, he said the group is looking for new board members, particularly targeting people with experience in “in and outside the sector.”
On Thursday, BP said Ian Tyler, former CEO of Balfour Beatty and senior independent director of mining company Anglo American, had chaired the remuneration committee, which will be approved at the annual meeting.
Like BP, Anglo American has recently been targeted by activist investor Elliott Management.
Auchicloss’ 2024 paid packets could be significantly smaller than that of Shell Boss Wael Sawan, which received just under £8 million in 2023.
Meanwhile, Lund, who has been criticized for overseeing BP’s previous strategy failures, saw his salary increase by 4.4% to £845,000, but his overall package was largely unchanged at £882,000.
