RLAM brands BP chief’s pay rise “unreasonable and insensitive”

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Royal London Asset Management has said it will be voting against the proposed pay rise for BP chief executive Bob Dudley.

The asset manager said the proposed pay rise for the oil company’s boss was “both unreasonable and insensitive” amid the poor performance of BP this year.

BP has proposed a 20 per cent rise in Dudley’s pay for 2015, which will see his pay rise from $16.4m (£11.62m) in 2014 to $19.6m in 2015. A vote on the pay deal will be held at the company’s annual meeting next Thursday.

Dudley is facing a shareholder revolt over his pay, with shareholder advisory groups Institutional Shareholder Services and Glass Lewis already recommending shareholders vote against it.

Ashley Hamilton Claxton, corporate governance manager at Royal London Asset Management, says: “This proposed increase is both unreasonable and insensitive. In a year in which BP has reported its worst ever annual loss, it has decided to sharply boost Mr. Dudley’s remuneration. We will be voting against this proposal.

“While we acknowledge BP has had to weather a turbulent period for oil markets, we strongly believe that executive remuneration should remain tied to performance.”

RLAM holds 0.7 per cent of BP’s shares, totalling £443m.

The news of Dudley’s pay deal follows the decision by Co-op chief executive Richard Pennycook to ask for a 60 per cent pay cut. Pennycock says the cut is “the right thing to do”.