BP Plc Chief Executive Officer Murray Auchincloss’ total compensation dropped to £5.36 million ($6.91 million) in 2024, about 30% less than the previous year, after the energy giant’s profits disappointed.
The London-based company’s 2024 earnings results reported in February showed a steep drop in profits compared with the previous year. That set the stage for a subsequent strategic switch back to oil and gas after years of shifting away from fossil fuels, as it strives to catch up with rivals such as Shell Plc which were quicker to pivot back to core businesses.
While Auchincloss saw his base salary rise to £1.45 million from £1.02 million, his share awards dropped to £2.75 million from £4.36 million, according to the annual report published on Thursday. His annual bonus was sharply reduced in his first full year as boss.
Auchincloss is in the middle of a roadshow meeting with investors in London in the hope of enlisting support for the company’s new direction. Activist investor Elliott Investment Management, which had bought about 5% of the oil major, is ramping up pressure on the company’s management after the new strategy fell short of its expectations. BP’s shares have declined about 6% since the strategy announcement on Feb. 26.
Read More: Elliott Ramps Up Pressure on BP as New Strategy Falls Short
BP chair Helge Lund is looking for new board members who can bring skills and experience that align with the company’s revised oil and gas-focused strategy, he said in the annual report. The board is particularly keen to recruit an oil and gas expert, according to a person familiar with the matter who asked not to be identified because the information is private.
Grafton Group Chair Ian Tyler was appointed to BP’s board to lead the remuneration committee, the company said Thursday. Tyler is also a director at Anglo American Plc.
BP’s previous strategy, unveiled in 2020, focused on shifting away from oil and gas and toward renewable energy. Elliott could push for major changes to the company’s management. Auchincloss and Lund, a key backer of the company’s earlier net zero strategy, could come under pressure, with all directors up for re-election to the board at the company’s general meeting on April 17.