BP Links Executive Bonuses to Slashing Emissions
March 29 2019 - 10:24AM
Dow Jones News
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.
Write to Dieter Holger at dieter.holger@dowjones.com and Adam
Clark at adam.clark@dowjones.com
(END) Dow Jones Newswires
March 29, 2019 10:09 ET (14:09 GMT)
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