SHAREHOLDER advice group Glass Lewis has advised investors in BP to vote against the oil firm’s proposed pay for chief executive Bob Dudley.
His total remuneration went up to $12.74m (£8.59m) last year, a 25 per cent increase on the $10.17m he was paid in 2013.
Glass Lewis said Dudley’s pay package out-paced the remuneration given to chief executives at firms of a similar size, despite BP’s “relative underperformance over the period”.
The US-based advisory company said it had “strong concerns” about how BP’s pay was related to financial performance and investor outcomes, and added it was also concerned with BP’s disclosure of aspects of the performance assessment structure upon which remuneration is based.
The group recommended that shareholders vote against the proposed pay for 2014 at the company’s annual general meeting in two weeks.
BP said: “Executive pay is closely linked to BP’s performance and is defined by the remuneration policy, which was overwhelmingly approved by our shareholders at last year’s AGM. Remuneration for 2014 was entirely in line with this policy and reflected the delivery of BP’s strategic targets over the past three years.”