BP denies £32m payout to ex-CEO Bernard Looney over ‘serious misconduct’
British oil giant concludes Looney knowingly misled the board over previous relationships at work
13 December 2023 - 22:59
byRon Bousso and Pushkala Aripaka
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Former BP CEO Bernard Looney. Picture: TOBY MELVILLE/REUTERS
London — BP cut more than £32.4m in remuneration from former CEO Bernard Looney after the British oil giant concluded he had knowingly misled the board over personal relationships with colleagues.
BP’s board dismissed Looney without notice effective December 13 and said in a statement on Wednesday he will not receive further salary or benefits from the dismissal date, and will not be paid an annual bonus for fiscal 2023.
Looney resigned in September with immediate effect after less than four years in the role for failing to fully disclose details of past personal relationships with colleagues. He acknowledged not being “fully transparent”.
The company was thrown into turmoil and the board is still seeking a permanent CEO.
Chair Helge Lund is leading an investigation with the help of law firm Fairfields into Looney’s undisclosed relationships to determine whether they breached company rules, company sources said earlier this month.
BP said Looney’s remuneration package was cut by £32.4m, with 87% of that due to his resignation on September 12, 10% as a result of the board’s decision to dismiss Looney for serious misconduct and a further 3% was clawed back at the discretion of the board.
The majority of the value, nearly £25m, was linked to Looney losing unvested share awards between 2021 and 2025.
Looney will also be required to repay 50% of the cash portion of his 2022 cash bonus, about £420,000.
Looney’s resignation came after the board investigated similar allegations against him in May 2022, following which Looney gave the board assurances over his past and future conduct.
A spokesperson for Looney did not immediately respond to a request for comment.
"Following careful consideration, the board has concluded that, in providing inaccurate and incomplete assurances in July 2022, Mr Looney knowingly misled the board," BP said in a statement on Wednesday.
Following Looney’s resignation, BP named Murray Auchincloss, who headed finances under Looney, as interim CEO.
The board is expected to decide on a permanent CEO in the first quarter of 2024, sources said earlier this month.
Boards have cut executives wages in the past over misconduct.
In one of the first examples, Wells Fargo stripped CEO John Stumpf of $41m in stock awards in 2016 after a sales practices scandal.
Two years ago, McDonald’s former CEO Steve Easterbrook agreed to return compensation worth $105m in equity awards and cash to settle a lawsuit over alleged lies about affairs.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
BP denies £32m payout to ex-CEO Bernard Looney over ‘serious misconduct’
British oil giant concludes Looney knowingly misled the board over previous relationships at work
London — BP cut more than £32.4m in remuneration from former CEO Bernard Looney after the British oil giant concluded he had knowingly misled the board over personal relationships with colleagues.
BP’s board dismissed Looney without notice effective December 13 and said in a statement on Wednesday he will not receive further salary or benefits from the dismissal date, and will not be paid an annual bonus for fiscal 2023.
Looney resigned in September with immediate effect after less than four years in the role for failing to fully disclose details of past personal relationships with colleagues. He acknowledged not being “fully transparent”.
The company was thrown into turmoil and the board is still seeking a permanent CEO.
Chair Helge Lund is leading an investigation with the help of law firm Fairfields into Looney’s undisclosed relationships to determine whether they breached company rules, company sources said earlier this month.
BP said Looney’s remuneration package was cut by £32.4m, with 87% of that due to his resignation on September 12, 10% as a result of the board’s decision to dismiss Looney for serious misconduct and a further 3% was clawed back at the discretion of the board.
The majority of the value, nearly £25m, was linked to Looney losing unvested share awards between 2021 and 2025.
Looney will also be required to repay 50% of the cash portion of his 2022 cash bonus, about £420,000.
Looney’s resignation came after the board investigated similar allegations against him in May 2022, following which Looney gave the board assurances over his past and future conduct.
A spokesperson for Looney did not immediately respond to a request for comment.
"Following careful consideration, the board has concluded that, in providing inaccurate and incomplete assurances in July 2022, Mr Looney knowingly misled the board," BP said in a statement on Wednesday.
Following Looney’s resignation, BP named Murray Auchincloss, who headed finances under Looney, as interim CEO.
The board is expected to decide on a permanent CEO in the first quarter of 2024, sources said earlier this month.
Boards have cut executives wages in the past over misconduct.
In one of the first examples, Wells Fargo stripped CEO John Stumpf of $41m in stock awards in 2016 after a sales practices scandal.
Two years ago, McDonald’s former CEO Steve Easterbrook agreed to return compensation worth $105m in equity awards and cash to settle a lawsuit over alleged lies about affairs.
Reuters
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