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| BP boss Bob Dudley faces shareholder dissent on pay | BP boss Bob Dudley faces shareholder dissent on pay |
| (about 7 hours later) | |
| Oil giant BP is due to hold its annual general meeting for shareholders on Thursday with some major investors planning to vote against chief executive Bob Dudley's 20% pay rise. | Oil giant BP is due to hold its annual general meeting for shareholders on Thursday with some major investors planning to vote against chief executive Bob Dudley's 20% pay rise. |
| Shareholders will discuss whether he should receive the rise, which comes despite job cuts and falling profits. | Shareholders will discuss whether he should receive the rise, which comes despite job cuts and falling profits. |
| Those who have spoken out include Aberdeen Asset Management and Royal London Asset Management. | Those who have spoken out include Aberdeen Asset Management and Royal London Asset Management. |
| Glass Lewis, ShareSoc, Pirc and ISS have also advised a vote against. | Glass Lewis, ShareSoc, Pirc and ISS have also advised a vote against. |
| The pay rise would take Mr Dudley's salary package to $19.6m (£13.8m). | The pay rise would take Mr Dudley's salary package to $19.6m (£13.8m). |
| Change | Change |
| Meanwhile the Institute of Directors warned that the pay increase risks sending "the wrong message to other companies". | |
| The vote is "advisory" so even a vote against would not strictly require any change of tack from the company. | The vote is "advisory" so even a vote against would not strictly require any change of tack from the company. |
| However, it could pave the way for change in the next year. | However, it could pave the way for change in the next year. |
| BP's pay policy is subject to a binding shareholder vote every three years. | BP's pay policy is subject to a binding shareholder vote every three years. |
| It was last set in 2014, meaning new proposals are due to be put forward for shareholder approval again in 2017. | It was last set in 2014, meaning new proposals are due to be put forward for shareholder approval again in 2017. |
| Tim Bush, head of governance at the investors' advisory consultancy Pirc, told the BBC's Today programme on Thursday that the "pay model is broken". | |
| Paying chief executives on a formula devised two or three years ago was not sensible. "There is a major problem in the way chief executives are recruited and paid," he said. | |
| But Mark Freebairn, partner at recruitment firm Odgers Berndtson, told Today: "If Bob Dudley was to leave [BP] it would be for a competitive company and remuneration would be part of the discussion. If you operate in a global market, you have to operate on a global scale." | |
| BP was now in a far better position than when Mr Dudley took the helm, he said. | |
| A spokesman for BP said shareholders themselves had backed the pay formula. | |
| "Despite the very challenging environment, BP's safety and operating performance was excellent throughout 2015... BP's performance surpassed the board's expectations on almost all of the measures that determine remuneration - and the outcome therefore reflects this. | "Despite the very challenging environment, BP's safety and operating performance was excellent throughout 2015... BP's performance surpassed the board's expectations on almost all of the measures that determine remuneration - and the outcome therefore reflects this. |
| "And these clear measures derive directly from BP's remuneration policy which was approved by shareholders at the 2014 AGM with over 96% of the vote," the spokesman said. | "And these clear measures derive directly from BP's remuneration policy which was approved by shareholders at the 2014 AGM with over 96% of the vote," the spokesman said. |