BP shareholders to vote on CEO’s $20m pay package

BP shareholders to vote on CEO’s $20m pay package

BP investors will vote on a near US$20 million pay package for Bob Dudley, the oil giant’s CEO, tomorrow.

If approved, the pay packet will provide the chief executive $19.6 million, an impressively large pay rise since last year’s $16.4 million.

Advisory companies such as Institutional Shareholder Services and Glass Lewis have both suggested all shareholders to vote against Dudley’s pay deal, while Royal London Asset Management, a major shareholder has called the reward “unreasonable and insensitive.”

James Bevan, investment chief at CCLA said his firm would “almost certainly” vote against Dudley’s pay package. Bevan also noted he has nothing against “paying high salaries to people who deserve them; but in this instance I see a big disconnect between what it being paid and what is justified.”

Accountancy firm PwC analysed 47 FTSE 100 companies and found out that total pay deals for chief executives increased by one per cent in recent annual reports.

Another pay agreement is proposed for the CEO of Reckitt Benckiser (LSE:RB), Rakesh Kapoor, for an estimated $32.7 million. Investors will vote in May.