The Department for Business, Innovation and Skills (BIS) is standing by the BP director who backed the mammoth executive pay deal that triggered a shareholder revolt last week.
Professor Dame Ann Dowling – who serves on the government department’s board as well as chairing the oil giant’s remuneration committee – sanctioned the £13.8m pay package for BP chief executive Bob Dudley, which comes amid a backdrop of losses and job cuts at the oil giant. It is struggling due to the low oil price.
Almost 60 per cent of shareholders opposed last year’s pay report.
But BIS feels there is no need for Dowling to reconsider her position on the board, according to Sky News.
“Departmental boards do not make or advise on policy,” said a BIS spokesperson, who added that the BP vote showed that the government’s tougher pay reforms are working.