BP defends CEOs massive pay raise after $5.2 billion loss

BP Bob Dudley pay

BP is being forced to defend a decision that gave CEO Bob Dudley a massive 20% increase in year-over-year compensation.

Angry investors want to know how the company, which loss $5.2 billion in 2015, could pay Dudley $19.6 in pay and benefits for the 2015 fiscal year.

BP shares have collapsed and the company recently announced plans to shed 7,000 jobs by the end of 2017.

“We consider the pay of the CEO to be simply too high, and particularly so in a year when the company suffered a record loss,” said small shareholder group ShareSoc.

Aberdeen Asset Management, a top 10 BP shareholder, was also said to be unhappy with the massive CEO pay increase.

 

The steep fall in oil and gas prices hurt BP’s share prices and the company was also still paying for the fallout from the 2010 Gulf of Mexico disaster.

The company’s pay increase for Bob Dudley arrives at a time when new US rules will require publicly-traded companies to show the difference between CEO pay and typical-worker pay.