BP 2009 Annual Report Download - page 177

BP Annual Report and Accounts 2009
Notes on financial statements
40. Remuneration of directors and senior management
2
10
6
Financial statements
175
Remuneration of directors
$ million
2009 2008 2007
Total for all directors
Emoluments 19 19 26
Gains made on the exercise of share options 21
Amounts awarded under incentive schemes 2–
Emoluments
These amounts comprise fees paid to the non-executive chairman and the non-executive directors and, for executive directors, salary and benefits
earned during the relevant financial year, plus bonuses awarded for the year. Ex gratia superannuation payments of $3 million were included in 2007.
Also included was compensation for loss of office of $1 million in 2008 and $1 million in 2007.
Pension contributions
Three executive directors participated in a non-contributory pension scheme established for UK employees by a separate trust fund to which
contributions are made by BP based on actuarial advice. Two US executive directors participated in the US BP Retirement Accumulation Plan during 2009.
Office facilities for former chairmen and deputy chairmen
It is customary for the company to make available to former chairmen and deputy chairmen, who were previously employed executives, the use of
office and basic secretarial facilities following their retirement. The cost involved in doing so is not significant.
Further information
Full details of individual directors’ remuneration are given in the directors’ remuneration report on pages 81 to 92.
Remuneration of directors and senior management
$ million
2009 2008 2007
Total for all senior management
Short-term employee benefits 36 34 35
Post-retirement benefits 34
Share-based payments 20 20 22
Senior management, in addition to executive and non-executive directors, includes other senior managers who are members of the executive
management team.
Short-term employee benefits
In addition to fees paid to the non-executive chairman and non-executive directors, these amounts comprise, for executive directors and senior
managers, salary and benefits earned during the year, plus cash bonuses awarded for the year. Deferred annual bonus awards, to be settled in shares,
are included in share-based payments. Short-term employee benefits includes an ex gratia superannuation payment of nil (2008 nil and 2007
$3 million) and compensation for loss of office of $6 million (2008 $3 million and 2007 $1 million).
Post-retirement benefits
The amounts represent the estimated cost to the group of providing defined benefit pensions and other post-retirement benefits to senior
management in respect of the current year of service measured in accordance with IAS 19 ‘Employee Benefits’.
Share-based payments
This is the cost to the group of senior management’s participation in share-based payment plans, as measured by the fair value of options and shares
granted accounted for in accordance with IFRS 2 ‘Share-based Payments’. The main plans in which senior management have participated are the EDIP
and MTPP. For details of these plans refer to Note 38.