Shareholders of British energy company BP revolted Thursday against the 14-million-pound ($25 million Cdn) pay package awarded to company CEO Bob Dudley.
Almost 60 per cent of BP shareholders voted against the 20 per cent hike in Dudley's compensation at the company's annual meeting in London. While the vote was non-binding, the company said it got the message of discontent after a year of losses, job cuts and employee pay freezes
"We hear you," company chairman Carl-Henric Svanberg said. "We will sit down with our largest shareholders to make sure we understand their concerns and return to seek your support for a renewed policy."
The Guardian reported that Church of England pension board's questioned "whether this level [of pay] is morally right."
Ann Dowling, a non-executive director of BP, said ahead of the vote that the existing pay policy had been based on "true underlying performance — how Bob and the team manage the aspects of the business over which they have control— strategy, operations and safety."
She defended the decision, but promised to "take the feedback around this year's report seriously."
The BBC said there is a binding shareholder vote every three years on BP's pay policy. The next binding vote is scheduled for 2017.
"British boards are now in the last chance saloon, if the will of shareholders in cases like this is ignored, it will only be a matter of time before the government introduces tougher regulations on executive pay," said Simon Walker, the director general of the Institute of Directors, which promotes development of corporate government.
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