BP 2008 Annual Report Download - page 80

Directors’ remuneration report
Pensions
All executive directors are part of a final salary pension scheme. Accrued
annual pension earned as at 31 December 2008 is £561,000 for
Dr Hayward, £264,000 for Mr Conn, $868,000 for Dr Grote and £326,000
for Mr Inglis.
Historical TSR performance
300
FTSE 100
BP 250
200
150
100
Value of hypothetical £100 holding
Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08
This graph shows the growth in value of a hypothetical £100 holding in
BP p.l.c. ordinary shares over five years, relative to the FTSE 100 Index
(of which the company is a constituent). The values of the hypothetical
£100 holdings at the end of the five-year period were £144.36 and
£115.05 respectively.
Remuneration of non-executive directors in 2008a
£ thousand
2007 2008
A Burgmans 86 90
Sir William Castell 87 108
C B Carroll 43 93
G Davidbn/a 100
E B Davis, Jr 107 105
D J Flint 86 90
Dr D S Julius 106 110
Sir Tom McKillop 87 95
Sir Ian Prosser 137 170
P D Sutherland 517 600
Directors leaving the board in 2008
Dr W E Masseyc 133 90
aThis information has been subject to audit.
bAppointed on 11 February 2008.
cAlso received a superannuation gratuity of £23,000.
In 2008 the board, after a review, determined that in future it would
continue to set the remuneration of the non-executive directors. However,
in the case of the chairman this would be based on a recommendation
from the remuneration committee and, for the non-executive directors, it
would be based on a recommendation from the chairman.
This process was adopted in 2008 and recommendations were
made. However, the chairman and the non-executive directors informed
the board that, in the current economic circumstances, they did not
wish to receive any increase in remuneration for 2009. The board
accordingly maintained the fees at the 2008 level for 2009 save that
no committee membership fee would in future be paid to members
of the nomination committee.
BP Annual Report and Accounts 2008
Directors’ remuneration report
Summary of remuneration of executive directors in 2008a
Annual remuneration Long-term remuneration
Share element of EDIPb
2005-2007 plan 2006-2008 plan 2008-2010
(vested in Feb 2008) (vested in Feb 2009) plan
Annual Non-cash benefits and Potential
Salary performance bonus other emoluments Total Actual Actualcmaximum
(thousand) (thousand) (thousand) (thousand) shares Value shares Valuedperformance
2007 2008 2007 2008 2007 2008 2007 2008 vested (thousand) vested (thousand) sharese
Dr A B Hayward £877 £998 £1,262 £1,496 £14 £15 £2,153 £2,509 0 0 66,136 £336 845,319
I C Conn £581 £670 £698 £871 £45 £45 £1,324 £1,586 0 0 66,136 £336 578,376
Dr B E Grote $1,175 $1,340 $1,551 $1,742 $10 $8 $2,736 $3,090 0 0 80,231f$603 581,748
A G Inglis £556 £670 £800 £1,173 £188 £212g£1,544 £2,055 0 0 54,994 £279 578,376
Directors leaving the board in 2008
Dr D C Allenh£500 £128 £539 £163 £13 £3 £1,052 £294 0 0 34,518 £175 n/a
Amounts shown are in the currency received by executive directors. Annual bonuses are shown in the year they were earned.
aThis information has been subject to audit.
bOr equivalent plans in which the individual participated prior to joining the board.
cIncludes shares representing reinvested dividends received on the shares that vested at the end of the performance period.
dBased on market price on vesting date (£5.08 per share/$45.13 per ADS).
eMaximum potential shares that could vest at the end of the three-year period depending on performance.
fDr Grote holds shares in the form of ADSs. The above number reflects calculated equivalent in ordinary shares.
gThis amount includes costs of London accommodation provided to Mr Inglis. In addition, under a tax equalization arrangement, BP also discharged a US tax liability arising on his
participation in the UK pension scheme amounting to $553,175.
hDr Allen resigned from the board on 31 March 2008. In addition to the above, he was awarded compensation for loss of office equal to one year’s salary (£510,000). He also received £30,000
in respect of statutory rights and retained his company car.
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