Call for BP chiefs to have bonuses linked to safety

Published on Thursday 18 January 2007 12:05

KEY shareholders are today calling for BP directors to have their bonuses linked closer with the company's safety and environmental performance, following incidents such as the refinery fire in Texas, where 15 people were killed.

The Local Authority Pension Fund Forum has called on BP chairman Peter Sutherland to address the issue of how senior executives' pay is related to non-financial issues.

The pressure on BP comes as incoming chief executive Tony Hayward prepares to meet former US Secretary of State James Baker, who earlier this week savaged BP in a report into its safety issues in the United States, which said a "corporate blindspot" on safety went right up to board level.

This will be the first meeting between the two men, who will be joined by outgoing chief executive Lord Browne, who insists he is committed to tackling safety issues during his final six months in office.

Corporate governance body Pirc, which has been advising the local authority pension funds, said: "Health and safety and environmental criteria should have a more prominent role in the executive remuneration performance indicators of energy companies."