The Guardian (UK): BP pays Browne £5.6m for success: “BP has run into trouble with major investors over its future remuneration proposals for Lord Browne and fellow directors. The oil company watered down plans that will be put to all shareholders at this year's annual meeting. Shell has run into similar opposition and revised its proposals as the Guardian revealed yesterday.” (ShellNews.net) 9 March 05
Terry Macalister
Wednesday March 9, 2005
Lord Browne, the chief executive of BP, earned £5.6m last year after steering the oil group to record annual profits.
His basic salary was £1.4m but a performance-related bonus of £2.2m and other benefits bumped his package up to £3.7m, compared with £3.3m the year before.
The 2004 figures were enhanced by long-term share options that saw the BP boss carry away stock worth £1.9m last month, bringing the total to £5.6m.
On top of that, Lord Browne was granted a further 1.5m shares in February 2004 at an exercise price of 422p which at today's market value would give him a profit of £2.2m.
The company defended the financial largesse, pointing out that the bulk of it was attached to company performance. "This package reflects record results at BP. Lord Browne does a first-class job and deserves to be paid competitively," a spokesman said.
Britain's most senior oil man is still said to be earning less than US competitors such as Lee Raymond of ExxonMobil.
The scale of US payouts was underlined with details yesterday that showed Stan O'Neal from Merrill Lynch earned $32m (£16.7m) last year.
Shareholder representatives appeared relaxed about Lord Browne's remuneration.
"We don't have any problem with world class rewards provided it is for world class performance and BP seems to have performed well this year," said a spokesman for the National Association of Pension Funds. The Pension and Investment Research Consultants said it had been consulted on pay at BP but declined to comment further.
BP has run into trouble with major investors over its future remuneration proposals for Lord Browne and fellow directors. The oil company watered down plans that will be put to all shareholders at this year's annual meeting.
Shell has run into similar opposition and revised its proposals as the Guardian revealed yesterday.
The pay of top oil executives is a sensitive issue because many motorists still feel petrol companies are making excessive profits at their expense.
http://www.guardian.co.uk/business/story/0,,1433338,00.html