British oil and gas giant BP released its annual report on Friday, reporting a significant increase in the total compensation of its chief executive, Bernard Looney, in 2022. His total compensation has more than doubled from £4.5 million in 2021 to £10 million last year. While his fixed salary and bonus remained stable, the amount awarded to him in shares under a performance plan increased twelvefold, to £6 million.
A surge in hydrocarbon prices that benefited the oil majors
Like all oil majors, BP benefited from the surge in hydrocarbon prices in 2022, in the wake of the war in Ukraine. Its annual result was boosted by this price increase, which led to significant distributions to shareholders. However, in its earnings release, BP announced a slowdown in its energy transition, which was criticized by environmentalists.
Greenpeace UK denounces the huge sums pocketed by energy bosses
Greenpeace UK has denounced the huge remuneration of energy bosses, who pocket huge sums of money while families struggle to make ends meet on their energy bills. The organization is calling for an appropriate tax on the profits of oil and gas giants, beyond the 35% tax on energy windfalls adopted last year by the British government.
BP explains its CEO’s compensation
BP said it had paid only 54% of the maximum contractual amount of its CEO’s compensation, citing a lower return to shareholders than most of its industry competitors. The performance plan was also established in 2020 in the midst of the pandemic, at a time when the share price was lower. However, this explanation was not enough to appease the criticism of Greenpeace UK and other environmental organizations.
Shell boss’s compensation also up
Ben van Beurden, the former head of Shell, has also seen his remuneration soar in 2022, reaching 9.7 million pounds, 53% more than in 2021. According to the British agency PA, this amount could be further increased to 21 million by additional bonuses.
In conclusion, the surge in hydrocarbon prices in 2022 has benefited the oil majors, but has also led to criticism of the considerable remuneration of their executives.
