As BP PLC logged "one of its best years in recent history" in 2017, top executive Bob Dudley earned approximately $13.4 million for the year, a 13% increase from a year earlier.
In its annual report and accounts for 2017 and annual report on Form 20-F for the year ended Dec. 31, 2017, BP said it delivered 44% returns on its U.K. shares during the three-year period through 2017, better than any of its supermajor peers.
The report, which includes the 2017 Directors' Remuneration Report, showed BP group CEO Bob Dudley earned $13.4 million in total remuneration in 2017, up 13% on the year but still 31% below what he made in 2015.
Both the company's strong operational and financial performance and a new, more demanding remuneration policy accounted for the remuneration.
Long-term performance shares awarded three years ago under an old policy helped drive some of Dudley's 2017 payout, however the remuneration committee used its discretion and effectively applied the more demanding new policy to those shares as well.
As a result, Dudley's 2017 remuneration was reduced by $4.2 million, or 24%, from $17.6 million to $13.4 million.
"In deciding executive pay for this period using our new policy, including our considered use of discretion, we believe we have fairly reflected BP's performance, the experience of shareholders and wider context," Dame Ann Dowling, chair of BP's remuneration committee, said.
The 2017 directors' remuneration report will be voted on at BP's annual general meeting in May.