BP to Cut Looney’s Compensation Package

Bernard Looney, who stepped down as BP’s Chief Executive in September, faces significant repercussions for not disclosing previous personal relationships with colleagues.

BP, the London-based oil giant, announced a set of actions aimed at reducing Looney’s termination package and reclaiming earlier payments, which may amount to 32.4 million pounds or approximately $40 million.

In an unprecedented move, the company stated that, after thorough consideration, it found Looney had provided misleading information to the board when asked in July 2022 about his relationships with company employees. Consequently, despite Looney’s resignation, the board dismissed him on Wednesday due to “serious misconduct,” effectively ending the 12-month notice period during which he was entitled to his salary.

Following this dismissal and other measures, Looney faces the loss of various compensations, including salary, pension, and bonuses. He is also expected to repay an estimated £1 million from 2022. BP anticipates Looney’s losses could reach as high as £32.4 million.

BP has yet to announce Looney’s successor, leaving uncertainty in leadership during a time when the oil industry grapples with volatile oil prices and the transition to cleaner energy. In the interim, Murray Auchincloss, the chief financial officer, is serving as the acting chief executive.

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