Mr Looney resigned in September, admitting he had not been “fully transparent” about his past dealings. Photo: Kamran Jebreili/AP
The former BP boss will lose up to £32 million after the oil giant's board found he deliberately misled them about a number of romantic relationships he had with colleagues.
Bernard Looney resigned in September, admitting he had not been “fully open” about his past relationships when previously asked about it.
But following an internal investigation, BP's board Wednesday said they had reduced his 12-month notice period and fired the former executive with immediate effect after concluding his actions constituted «serious misconduct.»
This means he will lose entitlement to a maximum of £32.4 million in pay and benefits, including salary, pension contributions and performance-related bonuses.
This amount is considered to be one of the largest ever received, a British company brought back its former boss after misconduct.
However, this amount is less than the $105 million (£84 million) that Steve Easterbrook, the former British chief executive of McDonald's, was forced to give up when the US fast food giant discovered that he had similarly lied about work relationships.
Former McDonald's boss Steve Easterbrook was forced to give up £84 million for lying about an official relationship. Photograph: David Paul Morris/Bloomberg News
It covers bonuses already paid to Mr Looney, of which he will be asked to return almost £1 million in cash.
BP said 87% of Looney's salary was automatically forfeited when he resigned with immediate effect in September, with 10% related to the board's decision that he should be sacked following the allegations. The board said a further 3% was returned at its discretion.
The revocation of the awards covers the period from July 2022, the date when BP said Mr Looney made «misleading representations» about your relationships with colleagues board
Mr Looney, a protégé of former BP boss Lord Browne, was first questioned about his workplace relationships in autumn 2019 during the recruitment process that led to his appointment as chief executive, and then again in 2022 following an anonymous complaint made within the company.
During the 2022 investigation, Looney gave assurances to the board, including Chairman Helga Lund, “regarding the disclosure of his past personal relationships with colleagues and his future conduct,” BP said.
In a statement to investors, the company added: “After careful consideration, the board of directors has concluded that by making inaccurate and incomplete representations in July 2022, Mr. Looney knowingly misled the board of directors.”
“Board determined that this constituted serious misconduct and Mr. Looney was therefore terminated without notice.
“Pursuant to this decision… Mr. Looney will not receive additional salary, retirement benefits or benefits as of the date of his termination. .
“Further, reflecting the decision of the board of directors that Mr. Looney should not withhold any variable service-related pay after the date of the misleading representations he made to the board of directors, also discretionary compensation was applied.”
BP said the £32.4m included £1.3m in salary and pension benefits for the period of his dismissal, as well as the £3.3m he could have received as a bonus in 2023. A further £24.9m is in unrealized performance shares, £2m in deferred bonus shares and £949,000 in cash from bonuses already awarded.
BP more A permanent replacement for Mr Looney is yet to be found, with chief financial officer Murray Auchincloss currently serving as interim chief executive.
Mr Looney's sudden departure from BP in September ended his successful career to that point.
Mr Looney was one of Lord Browne's «turtles» while he was chief executive. Photo: Matt Rittle
A self-described workaholic, Looney took over from Bob Dudley in 2020 and outlined plans to make BP greener, repeating Lord Brown's failed attempt two decades earlier.
He started working for the company as a drilling engineer in 1991. and later was one of Lord Browne's last executive assistants, referred to as «turtles» within the company.
As CEO, Mr. Looney later became a prominent green advocate in the oil world. and gas, arguing that BP's customers and the public expected the company to join forces to fight climate change by phasing out fossil fuels.
He outlined plans to cut the company's oil production by 40% and pledged to reach net zero carbon dioxide emissions by 2050, a significant gap with the rest of the industry.
However, Looney was later criticized for watering down these plans. He was also criticized for calling BP a «money machine» after the outbreak of the war in Ukraine, which sent oil and gas prices soaring. Some accused him of introducing a windfall tax in the UK.
His departure has echoes of his former mentor, who also resigned over issues related to his personal life. Lord Brown, who was chief executive until 2007, resigned a year earlier than planned after lying to a court during a legal battle over press reports about his personal life.
The Mail on Sunday outed the peer as gay. , which featured an interview with his former Brazilian lover Geoff Chevalier.
After his resignation, Lord Browne said he “categorically” rejected “any allegations of misconduct in relation to BP.”
p >His successor, Tony Hayward, another turtle, also resigned abruptly in 2010.
Mr Hayward was removed from office after he cleaned up a massive oil spill in Mexico in 2010 Gulf.
>After the Deepwater Horizon rig explosion killed 11 workers and caused the largest oil spill in US history, Mr. Hayward told reporters: “I want my life back.” sparking a public outcry and an apology for the “thoughtless” comment.
Mr. Looney's representative has been contacted for comment.
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