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| Compensation Package of New BP CEO Reaches £8 Million in 2023 |
BP’s New CEO Murray Auchincloss: Pay Package and Corporate Controversy
BP's new chief executive, Murray Auchincloss, received a substantial pay packet of just over £8 million in the previous year. Auchincloss assumed the role of CEO on an interim basis in September before being officially confirmed in January. His appointment came following the sudden departure of his predecessor, Bernard Looney, amid a review of his interpersonal relationships within the company.
The compensation figures have drawn criticism from various quarters, with the campaign group Global Witness denouncing Auchincloss's pay as emblematic of systemic issues within the energy sector. This controversy adds to the turbulent backdrop of BP's leadership transition.
Before stepping into the CEO role, Auchincloss served as BP's chief financial officer, bringing extensive financial acumen to his new position. His compensation for the year included a salary of £1.02 million, a bonus of £1.8 million, and share-based rewards valued at £4.6 million, among other benefits.
In contrast, Auchincloss's predecessor, Bernard Looney, faced financial repercussions upon his exit from the company. Despite earning over £10 million in 2022, Looney was required to repay BP £1.8 million last year due to his departure under contentious circumstances.
BP's financial performance in 2023 also came under scrutiny. While the company reported a full-year profit of $13.8 billion (£10.7 billion), marking a significant decrease from the record $27.7 billion profit in 2022, it remained one of the largest profit generators in the industry. The drop in earnings was attributed to various factors, including fluctuations in oil prices driven by geopolitical events like Russia's invasion of Ukraine.
Global Witness lambasted BP for rewarding its CEO with a multi-million-pound package amidst what they described as the company's exploitation of geopolitical tensions. The organization criticized BP for profiting from global crises while many individuals faced financial struggles.
As BP navigates through leadership changes and public scrutiny, the debate over executive compensation and corporate responsibility continues to underscore broader discussions about accountability and ethics within the energy sector.
Related Topics
Bernard Looney Compensation Global Witness Financial performance
Corporate controversy Energy sector Leadership transition Share-based rewards
Geopolitical events Profit Executive compensation Corporate responsibility
Ethics Oil prices Financial acumen Public scrutiny
Companies BP