BP 2010 Annual Report Download - page 122
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Please find page 122 of the 2010 BP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Directors’remunerationreport
Part3Non-executivedirectors’
remuneration
Policy
Theboardsetsthelevelofremunerationforallnon-executivedirectors
withinalimitapprovedfromtimetotimebyshareholders.Keyelementsof
BP’spolicyonnon-executivedirectorremunerationinclude:
• Remunerationshouldbesufcienttoattract,motivateandretain
world-classnon-executivetalent.
• Remunerationofnon-executivedirectorsisproposedbythechairman
andagreedbytheboardandshouldbeproportionaltotheircontribution
towardstheinterestsofthecompany.
• Remunerationpracticeshouldbeconsistentwithrecognizedbest
practicestandardsfornon-executivedirectors’remuneration.
• Remunerationshouldbeintheformofcashfees,payablemonthly.
• Non-executivedirectorsshouldnotreceiveshareoptionsfromthe
company.
• Non-executivedirectorsareencouragedtoestablishaholdinginBP
sharesoftheequivalentvalueofoneyear’sbasefee.
Process
BPreviewsthequantumandstructureofchairmanandnon-executive
remunerationonanannualbasis.Thechairman’sremunerationisreviewed
bytheremunerationcommittee,whichmakesarecommendationtothe
board;thechairmandoesnotvoteonhisownremuneration.Non-executive
directorremunerationisreviewedbythechairman,whomakesa
recommendationtotheboard;non-executivedirectorsdonotvoteontheir
ownremuneration.
Followingareview,thedecisionwastakennottoincreasethefee
levelsofBPnon-executivedirectors.However,itwasdecidedthat
membersoftheGulfofMexicocommitteewouldreceiveacommittee
membershipfeeof£5,000(thesamefeelevelastheothermainboard
committees)andthatthechairoftheGulfofMexicocommitteewould
receiveacommitteechairmanshipfeeof£30,000.
Fee structure
Thetablebelowshowsthecurrentfeestructurefornon-executivedirectors
on1January2011.
£thousand
Feelevel
Chairmana 750
Seniorindependentdirectorb 120
Boardmember 75
Audit,GulfofMexicoandsafety,ethicsandenvironment
assurancecommittees(SEEAC)chairmanshipfeesc 30
Remunerationcommitteechairmanshipfeec 20
Committeemembershipfeed
Transatlanticattendanceallowance 5
a
Thechairmanremainsineligibleforcommitteechairmanshipandmembershipfeesor
transatlanticattendanceallowance.Hehastheuseofafullymaintainedofceforcompany
business,achauffeuredcarandsecurityadviceinLondon.Hereceivessecretarialsupportas
appropriatetohisneedsinSwedenandarelocationallowanceforexpensesincurredinrelocating
toLondon.
b Theseniorindependentdirectorisstilleligibleforcommitteechairmanshipfeesandtransatlantic
attendanceallowanceplusanycommitteemembershipfees.
c Committeechairmendonotreceiveanadditionalmembershipfeeforthecommitteetheychair.
d FormembersoftheSEEAC,theaudit,theGulfofMexicoandtheremunerationcommittees.
5
Remuneration of non-executive directors in 2010a
£thousand
2009 2010
PAndersonb – 118
FBowmanc – 17
ABurgmans 93 90
CBCarroll 90 90
SirWilliamCastell 115 147
GDavidd 118 135
IDavise – 69
DJFlint 85 108
DrDSJulius 105 100
BNelsonf – 17
C-HSvanbergg 30 750
Directorsleavingtheboardin2010
EBDavis,Jrh 105 33
SirIanProsseri 165 52
aThisinformationhasbeensubjecttoaudit.
Appointedon1February2010.
Appointedon8November2010.
Alsoreceived£28,000forservingasamemberofBP’stechnologyadvisorycouncil.
Appointedon2April2010.
Appointedon8November2010.
Alsoreceivedarelocationallowanceof£90,000.
Alsoreceivedasuperannuationgratuityof£21,000.
Alsoreceivedasuperannuationgratuityof£43,945.
Noshareorshareoptionawardsweremadetoanynon-executivedirector
inrespectofserviceontheboardduring2010.
Non-executivedirectorshavelettersofappointmentwhich
recognizethat,subjecttotheArticlesofAssociation,theirserviceisatthe
discretionofshareholders.Alldirectorsstandforre-electionateachAGM.
Superannuation gratuities
Until2002,BPmaintainedalong-standingpracticewherebynon-executive
directorswhoretiredfromtheboardafteratleastsixyears’servicewere
eligibleforconsiderationforasuperannuationgratuity.Theboardwas,and
continuestobe,authorizedtomakesuchpaymentsunderthecompany’s
ArticlesofAssociationandtheamountofthepaymentisdeterminedatthe
board’sdiscretion,takingintoconsiderationthedirector’speriodofservice
andotherrelevantfactors.
In2002,theboardreviseditspolicywithrespecttosuperannuation
gratuitiessothat:
• Non-executivedirectorsappointedtotheboardafter1July2002would
notbeeligibleforconsiderationforsuchapayment.
• Whilenon-executivedirectorsinserviceat1July2002wouldremain
eligibleforconsiderationforapayment,serviceafterthatdatewould
notbetakenintoaccountbytheboardinconsideringtheamountofany
suchpayment.
SirIanProsserandErrollDavis,Jr,whobothretiredon15April2010,were
paidsuperannuationgratuitiesof£43,945and£21,000respectively.Thisis
inlinewiththepolicyarrangementsagreedin2002andoutlinedabove.
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