BP 2012 Annual Report Download - page 133

Corporate governance
Corporate governance
BP Annual Report and Form 20-F 2012
131
2012 total remuneration in more depth
This section contains detail on executive directors’ remuneration including salary, annual bonus and deferred bonus relating to 2012 and performance
shares for 2010-2012.
The charts below summarize the actual total direct remuneration outcome of 2012 for each of the executive directors compared to the potential that would
have been realised if variable plans had paid out at maximum.
The definitions for both the charts above and the summary table on the page opposite reflect those that are contained in the draft remuneration reporting
regulations proposed by the UK government’s Department for Business Innovation and Skills (BIS). In summary:
t Salary – actual salary received during 2012 both for actual and potential.
t Cash bonus – actual cash bonus received for 2012 compared to potential cash bonus if maximum of 225% of salary had been achieved and
one-third mandatory deferral applied.
t Deferred bonus – as per the draft regulations, this reflects deferred bonus from previous years that vested in 2012. The first potential vesting will be
in 2014.
t Performance shares – shows the actual value of the performance shares that vested at the end of 2012. The potential shows the value that would
have been attained if all shares had vested. The same share price was used for both calculations. For Iain Conn, the information also reflects
restricted shares awarded in 2008, and for Dr Brian Gilvary an award prior to him joining the board. Further detail can be found on page 133.
Dr Byron Grote ($ thousand)
Performance sharesCash bonus Deferred bonusSalary
2,000
4,000
6,000
8,000
10,000
Potential Actual
Potential Actual
Performance sharesCash bonus Deferred bonusSalary
1,000
2,000
3,000
4,000
5,000
6,000
Dr Brian Gilvary (£ thousand)
Iain Conn (£ thousand)
Performance sharesCash bonus Deferred bonusSalary
1,000
2,000
3,000
4,000
5,000
6,000
Potential Actual
Potential Actual
Bob Dudley ($ thousand)
Performance sharesCash bonus Deferred bonusSalary
2,000
4,000
6,000
8,000
10,000
Salary – 2012 outcomes
Salaries were reviewed in May 2012 relative to other oil majors, other large
UK and Europe-based international companies and key US companies. The
committee also considered the level of pay increases for executives below
board level, as well as different employee groups across the business.
Based on this review, salaries were increased by 3% for Bob Dudley (to
$1,751,000), Iain Conn (to £752,000) and Dr Byron Grote (to $1,485,000)
effective 1 July 2012. Dr Brian Gilvary’s salary of £690,000, which had been
set on his appointment on 1 January, was unchanged.