BP is seeking return or forfeiture of around 32 million pounds ($40 million) in compensation from former CEO Bernard Looney after the company said he “knowingly misled the board” with regards to a past personal relationship with a colleague, according to a Wednesday press release.
Because of his “serious misconduct,” Looney has been dismissed without notice, bringing an immediate end to his 12-month notice period, according to Wednesday’s announcement. This comes about three months after Looney resigned as CEO as this news surfaced, during which BP said no decision had been made regarding any remuneration payments. Murray Auchincloss, BP’s CFO, has been serving as interim CEO since September.
As such, the company is seeking to claw back several parts of Looney’s compensation package from the last few years.
Looney, who took the reins as CEO in February of 2020 according to his LinkedIn bio, will be required to repay 50% of the cash portion of the annual bonus paid to him for financial year 2022, worth about 420,000 pounds, and 6/36ths of the value of shares he was awarded in 2020 through 2022, net of tax, worth about 529,000 pounds.
He will also forfeit 1,293,000 pounds he would have earned in salary and pension for the next year; a potential bonus of more than 3 million pounds; nearly 25 million pounds in unvested shares; and 2 million pounds in unvested deferred bonus awards.
Overall, 87% of this roughly $40 million is automatically forfeited as a result of Looney’s resignation. About 10% of it results from the board’s decision that Looney should be dismissed following serious misconduct, while the last 3% has been clawed back at the discretion of the board.
According to the press release, the “board sought assurances regarding disclosure of his past personal relationships with Company colleagues and his future behaviour. Mr Looney gave these assurances to the board in July 2022.” However, he later admitted he had not disclosed everything.
London-based BP owns a variety of convenience retailing brands across the U.S. Besides its own branded stores, BP’s umbrella also includes Thorntons, Amoco, Ampm and TravelCenters of America. Its U.S. headquarters are in Houston.
