BP’s CEO gets a huge pay rise despite the company’s loss in 2015.
Bob Dudley, CEO of BP received an increment of nearly 20% in his total compensation for 2015, despite a loss of $6.5 billion posted by the company. The company cut almost 5,000 jobs in 2015 and announced another 4,000 in January 2016. The company also has plans to cut further 7,000 jobs by the end of 2017.
The annual report of the company said that no executives had a salary increase in 2015 and wouldn’t in 2016 either. Ann Dowling, chair of BP’s remuneration committee claims that “Despite the very challenging environment, BP delivered strong operating and safety performance throughout 2015 and responded early and decisively to the steep fall in oil price”.
BP lost $5.2 billion in 2015 due to the oil price crash that saw oil falling from triple digits in the summer of 2014 to around $35 per barrel right now. The CEO’s total pay increased from $16.390 million in 2014 to $19.602 in 2015. His base salary remains at $1.8 million, the rest of the $19.6 million for his total pay package is made out of bonuses, share awards and pension investments.