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RNS Number : 7853O
BP PLC
04 October 2019
press release
4 October 2019
BP chief executive Bob Dudley to retire,
to be succeeded by Bernard Looney
The Board of BP announced today that, after a 40-year career
with BP and over nine years as group chief executive, Bob Dudley,
64, has decided to step down as group chief executive and from the
BP Board following delivery of the company's 2019 full year results
on 4 February 2020 and will retire on 31 March 2020.
The Board is also pleased to announce that Bernard Looney, 49,
currently chief executive, Upstream, will succeed Dudley as group
chief executive and join the BP Board on 5 February 2020. Looney
will continue in his current role until this date.
Commenting on the announcement, BP Chairman Helge Lund said:
"Bob has dedicated his whole career to the service of this
industry. He was appointed chief executive at probably the most
challenging time in BP's history. During his tenure he has led the
recovery from the Deepwater Horizon accident, rebuilt BP as a
stronger, safer company and helped it re-earn its position as one
of the leaders of the energy sector. This company - and indeed the
whole industry - owes him a debt of gratitude."
On Looney's appointment, Lund added: "As the company charts its
course through the energy transition this is a logical time for a
change. Bernard has all the right qualities to lead us through this
transformational era. He has deep experience in the energy sector,
has risen through the ranks of BP, and has consistently delivered
strong safety, operational and financial performance. He is an
authentic, progressive leader, with a passion for purpose and
people and a clear sense of what BP must do to thrive through the
energy transition."
Bob Dudley commented: "It has been the privilege of a lifetime
to serve this company and work in this industry for the past four
decades. I have worked with so many committed people from all over
the world - both inside and outside BP - and I am enormously proud
of all the things we have achieved together to provide energy for
the world. Bernard is a terrific choice to lead the company next.
He knows BP and our industry as well as anyone but is creative and
not bound by traditional ways of working. I have no doubt that he
will thoughtfully lead BP through the transition to a low carbon
future."
Bernard Looney said: "It has been a great pleasure to work with
Bob and it is an honour to succeed him as chief executive. I am
humbled by the responsibility that is being entrusted to me by the
Board and am truly excited about both the role and BP's future. Our
company has amazing people, tremendous assets, and a set of core
values that guide our actions, but most of all we have a desire to
be better. I look forward to tapping into that desire and building
on the strong foundation that Bob has built as we meet society's
demand for cleaner, better energy."
The Board is also pleased to announce that Lamar McKay,
currently deputy group chief executive, has agreed to serve as
chief transition officer. In this new role, McKay will support the
Chairman and incoming group chief executive to ensure a full and
orderly transfer of leadership. He will assume this new role
immediately and step down as deputy group chief executive.
These decisions are the result of a comprehensive and deliberate
search process, including consideration of a range of internal and
external candidates. The process was led by Helge Lund, senior
independent director Sir Ian Davis and remuneration committee chair
Paula Rosput Reynolds, a working group of the Board's nomination
and governance committee.
Notes to editors:
-- A biography of Bernard Looney is attached to this release.
-- The company confirms there is no further information to be
disclosed under the requirements of listing rule 9.6.13R in
relation to Looney's appointment.
-- Details of arrangements for Dudley's retirement and of Looney's remuneration are:
Bob Dudley's retirement arrangements
- Bob Dudley's service contract provides for a 12 months' notice
period and notice commenced on 4 October 2019. He will step down
from the board on 4 February 2020 and remain an employee of the
company on his existing terms until 31 March 2020. Dudley has
waived his entitlement to notice pay for the unserved part of his
notice period.
- Dudley will be eligible for an annual bonus for the 2019
financial year in the normal way. The amount of this bonus will be
stated in the 2019 Directors' Remuneration Report with 50% being
deferred into shares in line with policy. He has waived any
entitlement to an annual bonus in respect of any part of 2020 that
he works.
- Dudley's share awards under BP's Executive Directors'
Incentive Plan (EDIP), will be preserved in accordance with the
good leaver provisions of the EDIP. Information relating to the
vesting of shares will be updated in the 2019, 2020 and 2021
Directors' Remuneration Reports.
Bernard Looney's remuneration arrangements
In keeping with BP's Remuneration Policy, Bernard Looney's
remuneration is designed to support the long-term interests of the
Group. Key elements of his remuneration package include:
- Annual salary of GBP1.3 million.
- Provisions relating to bonus opportunity, bonus deferral and
performance shares are all in accordance with BP's 2017
remuneration policy as approved by shareholders.
- Looney will be entitled to a cash allowance in lieu of pension
equal to 15 per cent of base salary. For the purposes of his
deferred pension calculation, base salary will be capped at his
current salary while accrued service has already been capped in
2011.
Bernard Looney
Bernard Looney has run BP's Upstream business since April 2016
and has been a member of the company's executive management team
since November 2010.
As chief executive, Upstream, Bernard is responsible for all
BP's oil and gas exploration, development and production activities
worldwide. The Upstream segment includes some 17,000 people
operating across almost 30 countries and produces around 2.6
million barrels equivalent of oil and gas a day.
During his tenure, process and personal safety performance has
improved by 35% and 20% respectively and production has grown by
20%, driven largely by 23 major project start-ups - delivered ahead
of schedule and under budget.
He has led access into new countries, including Mauritania and
Senegal, high-graded the portfolio with the acquisition of onshore
US assets from BHP Billiton and the proposed sale of the Alaska
business, and created innovative new business models such as Aker
BP in Norway.
Bernard has encouraged BP to lead the industry on methane
detection methods as well as driving sustainable emissions
reductions of almost 3 million tonnes CO(2) equivalent in the past
two years.
Under his leadership, Bernard has made significant improvements
in both gender and global diversity, with his top regional
leadership team now being one-third women and one-third from
outside the US/UK. He has also initiated a company-wide dialogue on
mental health in hope of 'ending the stigma' associated with the
issue.
In earlier Upstream executive roles, he was responsible for all
BP-operated oil and gas production
worldwide and for all BP's drilling and major project activity.
He led the creation of central drilling and projects functions
following the Deepwater Horizon accident.
Bernard joined BP in 1991 as a drilling engineer and worked in
operational roles in the North Sea, Vietnam and the Gulf of Mexico,
including as drilling engineer on the discovery of the giant
Thunder Horse field. After a period in BP Alaska, he became head of
the group chief executive's office, working directly for BP chief
executives Lord Browne and then Tony Hayward.
An Irish citizen, Bernard grew up in County Kerry and in 1991
gained a degree in Electrical Engineering from University College
Dublin. He later, in 2005, gained a MS in Management from Stanford
Graduate School of Business.
Bernard is a fellow of the Royal Academy of Engineering, a
fellow of the Energy Institute and is also a mentor in the FTSE 100
Cross-Company Mentoring Executive Programme.
Career history:
2016-present: chief executive, Upstream
2013-2016: chief operating officer, production
2010-2013: executive vice president, developments & member of BP executive team
2009-2010: managing director, BP North Sea
2008-2009: vice president, Norway and North Sea infrastructure
2006-2008: head of group chief executive office
2005-2006: senior vice president, BP Alaska
2004-2005: Stanford Graduate Business School
2002-2004: executive assistant to Group vice president exploration & renewal
1991-2002: production and drilling engineering roles in North
Sea, Vietnam and deepwater Gulf of Mexico.
Further information:
BP press office, London: bppress@bp.com, +44 (0)20 7496 4076
Cautionary statement:
In order to utilize the 'safe harbor' provisions of the United
States Private Securities Litigation Reform Act of 1995 (the
'PSLRA'), BP is providing the following cautionary statement. This
press release contains certain forward-looking statements - that
is, statements related to future, not past events and circumstances
- which may relate to one or more of the financial conditions,
results of operations and businesses of BP and certain of the plans
and objectives of BP with respect to these items. These statements
are generally, but not always, identified by the use of words such
as 'will', 'expects', 'is expected to', 'aims', 'should', 'may',
'objective', 'is likely to', 'intends', 'believes', 'anticipates',
'plans', 'we see' or similar expressions. Actual results may differ
from those expressed in such statements, depending on a variety of
factors including the risk factors set forth in our most recent
Annual Report and Form 20-F under "Risk factors" and in any of our
more recent public reports.
Our most recent Annual Report and Form 20-F and other period
filings are available on our website at www.bp.com, or can be
obtained from the SEC by calling 1-800-SEC-0330 or on its website
at www.sec.gov.
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END
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