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BP share price: Outgoing chairman warns against further cuts to exec pay

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BP’s (LON:BP) outgoing chairman has warned against further tinkering with pay packages for senior executives, The Telegraph reports. The comments came at the blue-chip oil major’s annual general meeting (AGM) yesterday.

BP’s share price has slipped marginally into the red in London this morning, having given up 0.17 percent to 591.80p as of 09:37 BST. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.12 percent higher at 7,868.86 points. The group’s shares have added just under a quarter to their value over the past year, as compared with about a five-percent gain in the Footsie.

Cuts to exec pay warning

The Telegraph quoted BP’s outgoing chairman Carl-Henric Svanberg as commenting at the group’s AGM yesterday that it was in the interests of the company and shareholders “that future remuneration policies can be left to work on their own merits without frequent use of discretion”.

“Our executives should have the certainty that their efforts deserve. This will require that we, from both sides, spend the time wisely to agree policies that can meet this goal,” he added.

The comments came after BP trimmed chief executive Bob Dudley’s  pay this year following a shareholder revolt in 2016. Yesterday, however, only 3.58 percent of voters opposed the group’s remuneration report despite calls from advisory body Pensions & Investment Research Consultants (Pirc)

Analysts on oil major

JPMorgan Chase, which has an ‘overweight’ rating on BP, boosted its price target on the shares from 560p to 600p today. According to MarketBeat, the oil major currently has a consensus ‘buy’ rating and an average price target of 570.79p.

As of 10:17 BST, Tuesday, 22 May, BP plc share price is 589.82p.

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