Ex-BP boss to forfeit $62 million for “serious misconduct”

Bernard Looney, former CEO of BP, will not receive his £32.4 million ($61.5 million) salary and bonus packaging after “serious misconduct”.

Looney resigned in September after admitting he had not been “fully transparent” in his disclosures about his work relationships.

In a statement, BP said Looney had “misled the board” by giving “inaccurate and incomplete assurances” as part of an investigation into the relationships in 2022.

“The board has determined that this amounts to serious misconduct, and as such, Mr Looney has been dismissed without notice effective on 13 December 2023. This decision had the effect of bringing Mr Looney’s 12 month notice period to an immediate end,” BP said.

Looney will receive no further salary, pension allowance, or benefits from the date of his dismissal, and he will not be paid any annual bonus in respect of the financial year 2023.

The total amount the former CEO will forfeit is £32.4 million ($62 million), with 87 per cent of that because of Looney’s resignation on 12 September 2023, 10 per cent from the board’s decision that he should be dismissed following serious misconduct, and a further 3 per that has been clawed back at the discretion of the board.

The majority of that, £24.9 million ($47 million), is from the value of the full unvested performance share awards under the Economic Development Incentive Program (EDIP), which Looney will lose.

Murray Auchincloss, former CFO and interim CEO, was recused from all decision-making in relation to Looney.

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