Row over BP boss Bob Dudley's pay ramps up

 
Jessica Morris
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BP wants to increase Dudley's remuneration by 20 per cent (Source: Getty)

The row over BP chief executive Bob Dudley's pay packet stepped up a gear today, after shareholder advisory group ShareSoc urged its members to vote against the oil major's remuneration report.

It comes amid rising ire among shareholders and advisors about Dudley's $19.6m (£13.9m) compensation package for last year.

Read more: BP's Bob Dudley banks $19.6m despite losses

BP wants to increase Dudley's remuneration by 20 per cent and pay execs maximum bonuses, despite the company's share price falling 24 per cent in the last year.

"We consider the pay of the chief executive to be simply too high, and particularly so in a year when the company suffered a record loss of $6.4bn in 2015. Even so his pay went up by 20 per cent," it said in a statement.

Mutual life and pensions fund Royal London Asset management, which holds 0.7 per cent of BP shares, has said it will vote against Dudley's pay at this week's annual general meeting.

Shareholder advisors Institutional Shareholder Services and Glass Lewis also recommended BP shareholders reject the pay package, citing similar concerns about its size in light of the company's performance.

Read more: Oil company forecasts aren't in line with reality

The company has suffered amid tumbling oil prices forcing it to cut costs and axe more than 5,000 jobs.

Shareholders will cast their votes on executive pay packages at the annual general meeting in London on April 14.

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