Ex-BP CEO Looney Takes $2.3MM Hit in 2023 Compensation

Former BP Plc Chief Executive Bernard Looney took a £1.8 million hit to his total compensation in 2023, following his unexpected resignation last year.  

The London-based oil and gas giant applied penalties to his variable pay as a result of his failure to disclose relationships with colleagues to BP’s board, according to its annual report.

“The board concluded that Bernard Looney’s actions amounted to serious misconduct and he was dismissed without notice” on Dec. 13, the company said its report. Looney initially stepped down abruptly in September, when the issue first became public.

BP said in December that Looney would give up as much as £32.4 million, the bulk of which was potential remuneration that was automatically forfeited upon his resignation.

The company applied a total of £2.98 million in “malus and clawback” to Looney for 2023, though the net hit to his remuneration is less. He received salary, benefits and cash in lieu of pension for the year, but not an annual bonus or performance shares. He also repaid 50% of the cash portion of his bonus for 2022, equivalent to £420,000. 

Looney’s sudden departure thrust Chief Financial Officer Murray Auchincloss into the interim position of CEO. Auchincloss was named permanent head of BP in January.

Auchincloss’s total compensation rose to £6.5 million in 2023, from £4.4 million a year earlier. His base pay was set at £1.45 million, in line with that of his predecessor. 

“The extensive external search we undertook confirmed our view that a base pay of £1.45 million was competitive to lead a company of BP’s size, business complexity and strategic ambition,” the firm said.