BP (BP)

Key policy decisions

        The committee then reviewed the existing remuneration policies and plans against these principles and made the following key policy decisions:

—

The overall quantum of remuneration and the general balance between short-term and long-term elements are to be maintained.



—

Salary levels will continue to be reviewed regularly by reference to those in Europe-based top global companies and the US oil and gas sector applying the committee's judgement.

121

—

The long-term incentives framework of the existing Executive Directors' Incentive Plan (EDIP) remains sound, although some changes to policy and application are now appropriate. Specific shareholder approval is being sought for renewal of the EDIP for a further five years.



—

The share element of the EDIP will provide the long-term performance-based component of the executive directors' remuneration package. There is no current intention to make further share options grants.



—

The majority of the value previously attributed to share options is to be redistributed to the share element, with the remainder going to the annual bonus.



—

The measure of long-term performance for the share element will be relative total shareholder return (TSR) compared with the other oil majors over three-year periods, with underlying relative performance also being assessed by the committee.



—

A proportion of the share element for the current group chief executive will be based on long-term personal leadership measures.



—

To simplify the operation of the EDIP and increase transparency, the share element will use performance shares rather than the current performance units and multiples.



—

The performance shares will accrue dividends during the performance period.



—

The current shareholding requirement for executive directors is to be maintained at 5 times the director's base salary, to ensure alignment of their interests with those of shareholders.



—

The current pension approach based on national policies is to be maintained.



—

The wider scene, including pay and employment conditions elsewhere in the Group, will be taken into account, especially when determining annual salary increases.

Key policy decisions

        The committee then reviewed the existing remuneration policies and plans against these principles and made the following key policy decisions:

—

The overall quantum of remuneration and the general balance between short-term and long-term elements are to be maintained.



—

Salary levels will continue to be reviewed regularly by reference to those in Europe-based top global companies and the US oil and gas sector applying the committee's judgement.

115

—

The long-term incentives framework of the existing Executive Directors' Incentive Plan (EDIP) remains sound, although some changes to policy and application are now appropriate. Specific shareholder approval is being sought for renewal of the EDIP for a further five years.



—

The share element of the EDIP will provide the long-term performance-based component of the executive directors' remuneration package. There is no current intention to make further share options grants.



—

The majority of the value previously attributed to share options is to be redistributed to the share element, with the remainder going to the annual bonus.



—

The measure of long-term performance for the share element will be relative total shareholder return (TSR) compared with the other oil majors over three-year periods, with underlying relative performance also being assessed by the committee.



—

A proportion of the share element for the current group chief executive will be based on long-term personal leadership measures.



—

To simplify the operation of the EDIP and increase transparency, the share element will use performance shares rather than the current performance units and multiples.



—

The performance shares will accrue dividends during the performance period.



—

The current shareholding requirement for executive directors is to be maintained at 5 times the director's base salary, to ensure alignment of their interests with those of shareholders.



—

The current pension approach based on national policies is to be maintained.



—

The wider scene, including pay and employment conditions elsewhere in the Group, will be taken into account, especially when determining annual salary increases.