BP more than doubles boss’ annual pay amid soaring gas prices

BP says its financial performance this year is ‘outstanding’

BP Chief Executive Bernard Looney gives a speech in central London (Reuters)

Profits bumped up by soaring gas prices have seen the annual pay of BP’s CEO more than double last year to nearly £4.5m.

Bernard Looney saw his pay rise from £1.74m in 2020 to £4.46m just 12 months later after receiving £2.4m in bonuses. It comes just one year after the energy giant in 2020 cut all bonus payouts in the wake of a pandemic slump.

The news is expected to fuel simmering calls for a windfall tax on North Sea oil and gas producers to relieve the pressure on UK households struggling to keep up with sky-high energy bills.

Last month, BP revealed its highest profit for eight years. Its underlying annual gains of $12.8bn (£9.5bn) is in part attributed to its shareholding in Moscow’s Rosneft, which it has announced plans to exit.

The producer suffered a major loss of $5.7bn in 2020 as Covid-19 lockdowns saw demand grind to a halt, sending oil prices plummeting.

Come 2021, Mr Looney referred to the company as a “cash machine” following its rapid recovery.

According to the energy giant’s annual report, its boss was awarded an annual bonus of £2.4m and a salary increase of 2.75 per cent to £1.32m - set to surge by a further 4.25 per cent this year. The company said this was aligned with its wider UK workforce.

Paula Rosput Reynolds, chair of BP’s remuneration committee, said: “Financial performance… was outstanding.”

She added: “Bernard continues to lead the enterprise with a bold vision and has also demonstrated that his goal of ‘performing while transforming’ is being met.”

It comes after Shell last week reported an increase of 26 per cent to its CEO Ben van Beurden’s annual pay to €7.4m (£6.2m), up from €5.8m (£5.2 million) a year earlier.

It said it had witnessed a 14-fold increase in profit last year, leading to calls for a windfall tax from many senior politicians.

Both businesses have been helped by rapidly rising energy prices in recent months.

Russia’s invasion of Ukraine further pushed up costs to record levels. But the two energy giants have promised to stop doing business with the country in light of Moscow’s recent aggression.

BP has said its decision to withdraw its 19.57 per cent stake in Rosneft could deal a $25bn blow to the company.

Meanwhile, the Bank of England expects inflation to reach around 8 per cent in April, when energy regulator Ofgem is due to raise its price cap by more than 50 per cent – about £700 for the average household’s bill.

It warned prices could soar further in October, when another hike in the price cap is introduced.