BP 2013 Annual Report Download - page 112

BP Annual Report and Form 20-F 2013108
Board remuneration policy for non-executive directors
Element Operation
The quantum and structure of NEDs’ remuneration is reviewed by the
chairman, the group chief executive and the company secretary who
make a recommendation to the board; the NEDs do not vote on their
own remuneration.
Remuneration for non-executive directors is reviewed annually.
Committee fees and allowances
The allowance will be paid in cash following each event of
intercontinental travel.
Fees for committee chairmanship and membership are
determined annually and paid in cash.
The fee for the SID will be determined from time to time,
and is paid in cash monthly.
NEDs are reimbursed for all reasonable travelling and subsistence
expenses (including any relevant tax) incurred in carrying out their duties.
The reimbursement of professional fees incurred by non-executive
directors based outside the UK in connection with advice and assistance
on UK tax compliance matters.
The maximum remuneration for non-executive directors is set in accordance with the Articles of Association.
Intercontinental allowance
The NEDs receive an allowance to reflect the global nature
of the Company’s business. The allowance is payable for
transatlantic or equivalent intercontinental travel for the
purpose of attending a board or committee meeting or site
visits.
Committee chairmanship fee
Those NEDs who chair a committee receive an additional
fee. The committee chairmanship fee reflects the additional
time and responsibility in chairing a committee of the board,
including the time spent in preparation and liaising with
management.
Committee membership fee
NEDs receive a fee for each committee on which they sit
other than as a chairman. The committee membership fee
reflects the time spent in attending and preparation for a
committee of the board.
The senior independent director (SID)
In the light of the SID’s broader role and responsibilities, the
SID is paid a single fee and is entitled to other fees relating
to committees whether as chair or member.
Basic fee
Remuneration is in the form of cash fees, payable monthly.
Remuneration practice is consistent with recognized best
practice standards for non-executive directors’ remuneration
and as a UK-listed company, the quantum and structure of
NED director remuneration will primarily be compared
against best UK practice.
Benefits and expenses
The NEDs are provided with support and reasonable
travelling expenses.
Professional fees
Fees will be reimbursed in the form of cash, payable
following assistance.
This directors’ remuneration report was approved by the board and signed on its behalf by David J Jackson, company secretary on 6 March 2014.