BP bonuses for two directors despite US oil disaster

Two senior directors at BP will still be paid bonuses for 2010, despite the Deepwater Horizon explosion in April which killed 11 people and resulted in the worst oil spill in US history.

Although the chastened oil major's remuneration committee ruled out any bonuses based on group-level results because of the Gulf of Mexico tragedy, Byron Grote, the chief financial officer, and Iain Conn, the head of refining and marketing, were judged to have exceeded their "specific segment targets" for the year. Dr Grote will be paid an extra $621,000 (£381,000), and Mr Conn an extra £310,500, taking their total pay packages to $1.6m and £828m respectively, both some way from their 2009 totals.

No other BP executive will be paid a bonus, and there is no vesting of the 2008-10 share element for any director, according to the annual report published yesterday.

"Remuneration decisions for 2010 were dominated by the scale and impact of the accident in the Gulf of Mexico," DeAnne Julius, the chairman of BP's remuneration committee , said. "In the judgement of the committee and the CEO this overrode the normal metrics for bonus outcomes."

Robert Dudley – who took over as chief executive from his gaffe-prone predecessor, Tony Hayward, at the start of October – saw his basic pay rise from $750,000 to $1.2m, in recognition of his promotion to the top job. But the total package of $1.7m will be less than last year, with the 2009 bonuses included.

Mr Hayward and Andy Inglis, the former head of exploration and production who also stepped down after the disaster, were paid contractual entitlements of a year's salary but neither was awarded any bonus for the year.

Even for Mr Conn and Dr Grote, a third of the bonus is deferred into share that will vest in three years' time, subject to meeting safety and environmental hurdles in the meantime.

Mr Dudley will not receive a pay rise this year. But Mr Conn and Dr Grote will see an increase – of £40,000 and $62,000 respectively – because they have had no raise since July 2008.

BP saw its first annual losses in nearly 20 years in 2010, dropping £3bn into the red, compared £9bn profits the previous year.

In the aftermath of Deepwater Horizon, Mr Dudley is working hard to drag BP back to business as usual. The company signed a $7.2bn deal with India's Reliance Industries last month and is also pursuing a $10bn tie-up with Russia's Rosneft, although the Russian plan is being contested by BP's existing joint venture in the country, TNK-BP.

Start your day with The Independent, sign up for daily news emails
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Admin Assistant

£12000 - £15000 per annum: Recruitment Genius: An expanding Insurance Brokerag...

Ashdown Group: Editor-in-chief - Financial Services - City, London

£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...

Guru Careers: Pricing Analyst

£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...

Ashdown Group: Treasury Assistant - Accounts Assistant - London, Old Street

£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...

Day In a Page

Revealed: Why Mohammed Emwazi chose the 'safe option' of fighting for Isis, rather than following his friends to al-Shabaab in Somalia

Why Mohammed Emwazi chose Isis

His friends were betrayed and killed by al-Shabaab
'The solution can never be to impassively watch on while desperate people drown'
An open letter to David Cameron: Building fortress Europe has had deadly results

Open letter to David Cameron

Building the walls of fortress Europe has had deadly results
Tory candidates' tweets not as 'spontaneous' as they seem - you don't say!

You don't say!

Tory candidates' election tweets not as 'spontaneous' as they appear
Mubi: Netflix for people who want to stop just watching trash

So what is Mubi?

Netflix for people who want to stop just watching trash all the time
The impossible job: how to follow Kevin Spacey?

The hardest job in theatre?

How to follow Kevin Spacey
Armenian genocide: To continue to deny the truth of this mass human cruelty is close to a criminal lie

Armenian genocide and the 'good Turks'

To continue to deny the truth of this mass human cruelty is close to a criminal lie
Lou Reed: The truth about the singer's upbringing beyond the biographers' and memoirists' myths

'Lou needed care, but what he got was ECT'

The truth about the singer's upbringing beyond
Migrant boat disaster: This human tragedy has been brewing for four years and EU states can't say they were not warned

This human tragedy has been brewing for years

EU states can't say they were not warned
Women's sportswear: From tackling a marathon to a jog in the park, the right kit can help

Women's sportswear

From tackling a marathon to a jog in the park, the right kit can help
Hillary Clinton's outfits will be as important as her policies in her presidential bid

Clinton's clothes

Like it or not, her outfits will be as important as her policies
NHS struggling to monitor the safety and efficacy of its services outsourced to private providers

Who's monitoring the outsourced NHS services?

A report finds that private firms are not being properly assessed for their quality of care
Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

The Tory MP said he did not want to stand again unless his party's manifesto ruled out a third runway. But he's doing so. Watch this space
How do Greek voters feel about Syriza's backtracking on its anti-austerity pledge?

How do Greeks feel about Syriza?

Five voters from different backgrounds tell us what they expect from Syriza's charismatic leader Alexis Tsipras
From Iraq to Libya and Syria: The wars that come back to haunt us

The wars that come back to haunt us

David Cameron should not escape blame for his role in conflicts that are still raging, argues Patrick Cockburn
Sam Baker and Lauren Laverne: Too busy to surf? Head to The Pool

Too busy to surf? Head to The Pool

A new website is trying to declutter the internet to help busy women. Holly Williams meets the founders