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By Dieter Holger and Adam Clark
Executives at BP PLC (BP.LN) will see 10% of their 2019 bonuses linked to cutting greenhouse-gas emissions, the company said Friday.
The decision marks the latest move by an oil giant to shore up its commitments to the Paris Agreement as the industry looks to a clean-energy future. It brings BP in line with Royal Dutch Shell PLC (RDSA.LN), which has already linked 10% of its executives' bonuses to carbon emissions.
BP also said it would increase the weighting for strategic progress--which includes its environmental targets--to 30% from 20% for the shares it awards to executives based on performance between 2019 and 2021. The British oil company said this reflects its transition toward clean energy.
Chief Executive Bob Dudley earned a total of $14.7 million in 2018, down from $15.1 million in 2017. Mr. Dudley received a lower bonus, partially offset by an increased share award. Of his total 2018 compensation, $1.7 million was paid in bonuses and $11 million in performance shares.
The change to executive pay follows BP's decision in February to link the bonuses of around 36,000 employees to its emission targets.
"I am of the view that more energy with fewer emissions--the dual challenge--can be met if a progressive and pragmatic approach is taken to the energy transition," said Helge Lund, chairman at BP.
BP has slashed 2.5 million metric tons of GHG emissions since 2016 as it improves energy efficiency and cuts methane emissions and flaring, targeting a 3.5 million metric tons reduction by 2025, according to its 2018 annual report.
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(END) Dow Jones Newswires
March 29, 2019 10:09 ET (14:09 GMT)
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