BP: Rewarding incompetence...generously

BP directors take bonuses for year of Gulf of Mexico oil spill

Two of BP’s most senior directors have taken bonus payments for their work in the year of the Gulf of Mexico oil spill, although new chief executive Bob Dudley waived his reward.

Byron Grote, finance director, and Iain Conn, head of downstream, had their £800,000 and £724,000 salaries and benefits topped up with rewards of £380,000 and £310,500 respectively. The bonuses amounted to 30pc of the full potential payout.

BP’s annual report also revealed that Tony Hayward, the former chief executive who left the company after the worst of the crisis, will get almost £100,000 a year for his work as a non-executive of BP’s Russian joint venture TNK-BP. He left the board in October with £2m in salary and severance payments, plus a £600,000-a-year pension.

According to the report, Mr Dudley denied himself a bonus in what was a “painful year” for BP. In October, Mr Dudley insisted that incentive payments would in future be linked to safety performance.

Despite forgoing his bonus, Mr Dudley is still potentially eligible for up to 581,084 shares, currently worth £2.8m, on top of a £1m salary. The shares will vest according to BP’s performance over the next few years.

Andy Inglis, the head of exploration and production who left following the crisis, was given a £690,000 pay-off and the report reveals that he was also handed an extra £200,000 for “repatriation costs” on top of his £745,000 salary and benefits. Carl-Henric Svanberg, the chairman of BP criticised for his handling of the disaster, took home a £750,000 package, plus £90,000 in relocation costs.