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BP » Topics » Superannuation Gratuities

This excerpt taken from the BP 20-F filed Mar 4, 2008.
Superannuation gratuities
Until 2002, BP maintained a long-standing practice whereby non-executive directors who retired from the board after at least six years’ service were eligible for consideration for a superannuation gratuity. The board was, and continues to be, authorized to make such payments under the company’s Articles of Association and the amount of the payment is determined at the board’s discretion, having regard to the director’s period of service as a director and other relevant factors.

     In 2002, the board revised its policy with respect to superannuation gratuities so that:
– Non-executive directors appointed to the board after 1 July 2002 would not be eligible for consideration for such a payment.
– While non-executive directors in service at 1 July 2002 would remain eligible for consideration for a payment, service after that date would not be taken into account by the board in considering the amount of any such payment.
     The board made a superannuation gratuity of £21,000 during the year to Mr John Bryan, who retired in April 2007. This payment was in line with the policy arrangements agreed in 2002 and outlined above.

Non-executive directors of Amoco Corporation
Non-executive directors who were formerly non-executive directors of Amoco Corporation have residual entitlements under the Amoco Non-Employee Directors’ Restricted Stock Plan. Directors were allocated restricted stock in remuneration for their service on the board of Amoco Corporation prior to its merger with BP in 1998. On merger, interests in Amoco shares in the plan were converted into interests in BP ADSs. The restricted stock will vest on the retirement of the non-executive director at the age of 70 (or earlier at the discretion of the board). Since the merger, no further entitlements have accrued to any director under the plan. The residual interests, as interests in a long-term incentive scheme, are set out in the table below, in accordance with the Directors’ Remuneration Report Regulations 2002.
  Interest in BP ADSs   Date on  
  at 1 Jan 2007 and   which director  
  31 Dec 2007 a  reaches age 70 b 
E B Davis, Jr 4,490   5 August 2014  
Dr W E Massey 3,346   5 April 2008  
Directors leaving the board in 2007      
J H Bryanc 5,546   5 October 2006  
a No awards were granted and no awards lapsed during the year. The awards were granted over Amoco stock prior to the merger but their notional weighted average market value at the date of grant (applying the subsequent merger ratio of 0.66167 of a BP ADS for every Amoco share) was $27.87 per BP ADS.
b For the purposes of the regulations, the date on which the director retires from the board at or after the age of 70 is the end of the qualifying period. If the director retires prior to this date, the board may waive the restrictions.
c Mr Bryan retired from the board on 12 April 2007. He had received awards of Amoco shares under the plan between 25 April 1989 and 28 April 1998 prior to the merger. These interests had been converted into BP ADSs at the time of the merger. In accordance with the terms of the plan, the board exercised its discretion over this award on 12 April 2007 and the shares vested on that date (when the BP ADS market price was $66.79) without payment by him.

Past directors
Mr Miles (who was a non-executive director of BP until April 2006) was appointed as a director and non-executive chairman of BP Pension Trustees Limited in October 2006 for a term of three years. During 2007, he received £150,000 for this role.

 

This directors’ remuneration report was approved by the board and signed on its behalf by David J Jackson, Company Secretary, on 22 February 2008.


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  73
 
BP board performance report
 
Letter from the chairman

This excerpt taken from the BP 20-F filed Jun 13, 2006.

Superannuation Gratuities

        In accordance with the Company's long-standing practice, non-executive directors who retire from the board after at least six years' service are, at the time of their retirement, eligible for consideration for a superannuation gratuity. The board is authorized to make such payments under the Company's Articles. The amount of the payment is determined at the board's discretion (having regard to the director's period of service as a director and other relevant factors).

        In 2002, the board revised its policy with respect to such payments so that: (i) non-executive directors appointed to the board after July 1, 2002 would not be eligible for consideration for such a payment; and (ii) while non-executive directors in service at July 1, 2002 would remain eligible for consideration for a payment, service after that date would not be taken into account by the board in considering the amount of any such payment.

        The board made no superannuation gratuity payments during 2004.

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This excerpt taken from the BP 20-F filed Jun 30, 2005.

Superannuation Gratuities

        In accordance with the Company's long-standing practice, non-executive directors who retire from the board after at least six years' service are, at the time of their retirement, eligible for consideration for a superannuation gratuity. The board is authorized to make such payments under the Company's Articles. The amount of the payment is determined at the board's discretion (having regard to the director's period of service as a director and other relevant factors).

        In 2002, the board revised its policy with respect to such payments so that: (i) non-executive directors appointed to the board after July 1, 2002 would not be eligible for consideration for such a payment; and (ii) while non-executive directors in service at July 1, 2002 would remain eligible for consideration for a payment, service after that date would not be taken into account by the board in considering the amount of any such payment.

        The board made no superannuation gratuity payments during 2004.

131


EXCERPTS ON THIS PAGE:

20-F
Mar 4, 2008
20-F
Jun 13, 2006
20-F
Jun 30, 2005

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