Former BP CEO Forfeits $40 Million Due to Misconduct-Related Resignation

Bernard Looney, former chief executive of BP, is required to forfeit over $40 million in compensation and return a portion of his previous year’s bonus. This decision follows BP’s investigation, which concluded that Looney “knowingly misled the board” by failing to fully disclose personal relationships with colleagues, an act described as “serious misconduct.”

Looney, who assumed leadership of the British oil and gas corporation in 2020, resigned in September 2022, three years into his tenure. BP’s investigation into his personal relationships with colleagues found that he was not “fully transparent” about these relationships.

The bulk of the $40 million forfeiture results from Looney’s resignation, with approximately 10% linked to the board’s decision to categorize his departure as stemming from “serious misconduct.” As a consequence, Looney will not be receiving his annual bonus for the current year, which was estimated to be around $1.6 million. Additionally, he is obligated to repay 50% of the cash portion of the previous year’s annual bonus, amounting to approximately $529,939.

The remainder of the forfeited compensation includes various elements such as salary allowance, pension allowance, and share awards from BP’s Executive Directors’ Incentive Plan. A significant portion of this, amounting to approximately $31.4 million, pertains to unvested performance share awards under the same plan.

BP became aware of allegations regarding Looney’s personal relationships in May 2022. While Looney disclosed some historical relationships before his tenure as CEO, the details were not fully comprehensive. Following his resignation, BP stated that although Looney was not entirely transparent, he did not violate the company’s rules. However, additional allegations have emerged and are currently under investigation, as reported by the Wall Street Journal. BP does not plan to release a public report on these investigations.

Looney joined BP in 1991 and worked his way up to CEO, a position in which he aimed to transform the company. He set an ambitious target of achieving net zero emissions by 2050 and planned to significantly increase BP’s investment in low-carbon projects, as noted by the Associated Press.

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