BP 2014 Annual Report Download - page 66

Shareholder engagement
The company operates an active investor relations programme and the
board receives feedback on shareholder views through results of an
anonymous investor audit and reports from management and those
directors who met with shareholders over the year.
Shareholder engagement cycle 2014
January BP Energy Outlook 2035 presentation
February Fourth quarter results
Investor roadshows with executive management
March
Strategy update presentation to investors
Chairman and board committee chairs meeting
Engagement on remuneration
and governance issues
UKSA private shareholders’ meeting
SRI updates – unconventional gas
and hydraulic fracturing; and oil sands
SRI roadshow on BP Sustainability Review 2013
April
US legal issues conference call
Annual General Meeting
First quarter results
June Launch of BP Statistical Review of World Energy
July
Second quarter results
Publication of the ‘BP proposition’ on bp.com
Investor roadshows with the group CEO
and CFO
August Engagement with UKSA private shareholder
panel on BP’s 2013 financial reports
September US legal issues conference call
Oil and gas sector conferences
October Third quarter results
December
Engagement on remuneration
Group SRI meeting
Upstream strategy presentation
Institutional investors
Senior management regularly meet with institutional investors through
roadshows, group and one-to-one meetings and events for socially
responsible investors.
During the year the chairman, senior independent director and chairs of the
audit and remuneration committees held individual investor meetings to
discuss strategy, the board’s view on BP’s performance, governance, audit
and remuneration. An annual investor event was held in March 2014 with
the chairman and all the board committee chairs. This meeting enables
BP’s largest shareholders to hear about the work of the board and its
committees and for non-executive directors to engage with investors.
In December the chairman and members of the executive team met with
socially responsible investors as part of BP’s annual SRI meeting. The
meeting examined a number of operational and strategic issues, including
how the board looks at risk and strategy, BP’s Energy Outlook 2035,
how the company approaches operational risk, upstream contractor
management, technology and BP’s portfolio.
See bp.com/investors to download materials from investor presentations,
including the group’s financial results and information on the work of the
board and its committees.
Private investors
BP held a further event for private investors in conjunction with the UK
Shareholders’ Association (UKSA) in 2014. The chairman and head of
investor relations made presentations on BP’s annual results, strategy and
the work of the board. The shareholders asked questions on BP’s
activities. Later in the year, the UKSA met with the company to give
feedback on the BP Strategic Report 2013.
AGM
Voting levels decreased slightly in 2014 to 63.13% (of issued share capital,
including votes cast as withheld), compared to 64.24% in 2013 and
63.24% in 2012. Each year the board receives a report after the AGM
giving a breakdown of the votes and investor feedback on their voting
decisions for the meeting to inform the board on any issues arising.
UK Corporate Governance Code compliance
BP complied throughout 2014 with the provisions of the UK Corporate
Governance Code, except in the following aspects:
B.3.2 Letters of appointment do not set out fixed-time commitments
since the schedule of board and committee meetings is subject
to change according to the demands of business and other events.
All directors are expected to demonstrate their commitment to the
work of the board on an ongoing basis. This is reviewed by the
nomination committee in recommending candidates for annual
re-election.
D.2.2 The remuneration of the chairman is not set by the remuneration
committee. Instead the chairman’s remuneration is reviewed by
the remuneration committee which makes a recommendation
to the board as a whole for final approval, within the limits set
by shareholders. This wider process enables all board members
to discuss and approve the chairman’s remuneration (rather than
solely the members of the remuneration committee).
BP Annual Report and Form 20-F 201462