BP trebles Dudley’s pay deal to $8.7m for 2013

Bob Dudley has more than trebled his pay package at BP. Picture: Getty
Bob Dudley has more than trebled his pay package at BP. Picture: Getty
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Bob Dudley, the chief executive of BP, saw the value of his pay package more than treble to $8.7 million (£5.2m) last year, according to the oil major’s latest annual report.

The US-born industry veteran, who took the helm in October 2010 following the Gulf of Mexico disaster, received a cash bonus of $2.3m, along with shares worth $4.5m.

A spokesman for the oil giant said: “BP has made strong progress over the past three years under Bob Dudley’s leadership, particularly in areas such as safety, operations and building for the future through reserve replacement, and his remuneration reflects this.

“The great majority of his potential pay is directly dependent on BP’s performance in areas essential both to the delivery of the company’s strategy and to the long-term interests of its shareholders.”

Dudley’s entire career has been spent in the oil and gas industry, including a number of senior roles at Amoco, negotiating deals in the South China Seas, before its $48.2bn merger with BP in 1998.

The company continues to grapple with the fallout of the Gulf of Mexico oil spill in 2010, with total costs standing at more than $42bn. The Deepwater Horizon disaster killed 11 people.

BP last month reported a 21 per cent fall in full-year profits to $13.4bn amid weaker margins in its refining business and a fall in production as assets were sold off. Profits were also hit by write-offs due to the failure of an exploration well in Brazil to encounter commercial quantities of oil or gas.

Dudley has warned that Scottish independence could create “big uncertainties” for the group.

When contributions to his pension were taken into account, Dudley’s total package for 2013 was worth almost $13.2m.