‘This fundamental reset of our strategy demonstrates a clear focus on actions to drive performance improvement and grow cash flow and returns for bp’s shareholders’
BP’s chief executive Murray Auchincloss faced a significant pay reduction last year as the company’s profits saw a downturn.
His earnings, inclusive of bonuses and shares, amounted to £5.4million in 2024, which marks a substantial decrease from the £7.7m he received in 2023, BP’s annual report has shown. The cut represents nearly one-third less than his previous remuneration, with a notable reduction of over £1.1m in his bonus, totalling £734,000—a steep contrast to his prior bonus amount.
Additionally, share payments dropped by £1.6m, leaving him with approximately £2.8m in BP stocks. In the backdrop of this financial adjustment, BP reported profits of £7.2b last year, which is roughly one-third less than the profits recorded in 2023.
The decline follows a period in which oil and gas prices surged in the aftermath of Russia’s invasion of Ukraine. Despite reaping record profits in 2022, BP has faced scrutiny from some investors regarding its stock performance, which has not kept pace with that of its rival, Shell. Responding to investor concerns, Mr Auchincloss along with other senior figures at BP have pledged greater investment in the company’s fossil fuel operations while substantially reducing expenditure on renewable energy initiatives.
Although BP was once considered to be at the forefront of green policy initiatives among its peers, Mr Auchincloss admitted in February that the company had transitioned “too far, too fast” into the renewable sector. While BP maintains its commitment to achieving net-zero carbon emissions by 2050, it plans to slash its yearly spending on renewables by almost 75%.
This pivot has drawn criticism from environmental groups and stands in opposition to recommendations made by global energy authorities aimed at curbing climate change effects. Mr. Auchincloss took the helm in January of the previous year, having served as interim chief executive since September 2023 following the unexpected departure of Bernard Looney.
Prior to this, he held the position of chief financial officer. Additionally, he had to postpone unveiling the strategic overhaul to allow time for recovery from a medical procedure, eventually returning to work in February.
In his yearly letter, Mr. Auchincloss stated: “This fundamental reset of our strategy demonstrates a clear focus on actions to drive performance improvement and grow cash flow and returns for bp’s shareholders.” BP was approached for a statement.