In a significant move reflecting corporate accountability, BP (LON:BP) has formally terminated its Chief Executive Bernard Looney, stripping him of more than £32 million in compensation. This action follows revelations of Looney’s failure to fully disclose personal relationships with colleagues, deemed as ‘serious misconduct’ by the company.
Looney’s rise and all at BP
Looney, whose career at BP began in 1991 as a graduate, quickly rose through the ranks. He was named head of the company’s upstream division in 2016 and became CEO in 2020. However, his tenure was marred by allegations concerning undisclosed personal relationships with colleagues, leading to his resignation in September.
Investigation and consequences
After a thorough investigation, including external legal assistance, BP’s board concluded that Looney misled them in July 2022 about his past relationships and future conduct. The board’s decision led to his immediate dismissal, curtailing his one-year notice period and resulting in the loss of nearly £25 million in unvested share awards, salary, pension allowances, and a potential bonus for the financial year.
Financial impact
Looney’s pay package, which more than doubled to £10 million in 2022, is now significantly affected. The total loss includes a 120% increase over his 2021 earnings.
Broader implications for BP
Looney’s departure raises questions about BP’s future strategy, especially his plans for reducing oil and gas production and achieving net zero by 2050. BP Chair Helge Lund has indicated that the search for a new CEO might include external candidates, a departure from BP’s tradition of internal promotions.
Looney’s fall from grace, from a promising career that started over three decades ago, to a dismissal that cost him a fortune, marks a significant moment in corporate governance, highlighting the delicate balance between personal conduct and professional responsibility.
This article first appeared on Invezz.com
