BP (LON:BP) has managed to avoid a repeat of last year’s shareholder revolt, winning the support of more than 97 percent of voters for its pay policy. The vote at the group’s annual general meeting (AGM) yesterday came after the oil major significantly trimmed the pay package of its chief executive Bob Dudley earlier this year.
BP’s share price has fallen deep into the red in today’s session, having lost 1.28 percent to 464.50p as of 10:18 BST, in line with a broader market selloff which has seen the benchmark FTSE 100 shed 1.29 percent to 7,406.89 points so far today. The group’s shares have added more than 27 percent to their value over the past year, but have given up just under nine percent in the year-to-date.
BP disclosed in a regulatory filing yesterday that a little over 97 percent of voters had supported the group’s remuneration policy at the company’s AGM, with only 2.72 voting against the resolution. The news is a boost for the oil major which saw a near 60-percent shareholder revolt at last year’s AGM.
Earlier this year, the FTSE 100 group announced that it had trimmed its chief executive’s pay for 2016 to $11.6 million, marking a 40-percent drop on his pay deal for the prior-year period which angered investors.
The Telegraph quoted BP chairman Carl-Henric Svanberg as saying that at the previous event “shareholders sent us a very clear message on how we approached paying our executive directors”.
Ashley Hamilton Claxton, corporate governance manager at Royal London Asset Management, meanwhile told Bloomberg in an email that the oil major’s remuneration committee had “made the right decision to significantly reduce the total pay that Mr. Dudley will be awarded going forward”.