BP response to shareholder revolt a milestone


Ashley Hamilton Claxton, Corporate Governance Manager

6 April 2017

The 2017 pay policy looks set to significantly reduce the total pay that Mr Dudley will be awarded going forward. It is rare for a company to consult with us on proposals for reducing pay, setting an example for other companies holding binding votes this year.
We applaud the BP remuneration committee for being proactive in responding to the shareholder revolt last year and see this as a milestone in the engagement between companies and shareholders. In particular, the committee applied discretion to override the formulaic outcome of the pay policy, which is a welcome step in the right direction.

The 2017 pay policy looks set to significantly reduce the total pay that Mr Dudley will be awarded going forward. It is rare for a company to consult with us on proposals for reducing pay, setting an example for other companies holding binding votes this year.

We applaud the BP remuneration committee for being proactive in responding to the shareholder revolt last year and see this as a milestone in the engagement between companies and shareholders. In particular, the committee applied discretion to override the formulaic outcome of the pay policy, which is a welcome step in the right direction.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.