BP plc · LSE:BP.
BP — bp group investor meeting slidepack
23 slides from BP's investor presentation, Mar 23, 2011
Slide 1: Meeting with BP Chairman and Committee Chairs
Meeting with BP Chairman and Committee Chairs 23rd March 2011 St James’s Square
Slide 2: Introduction
Introduction Carl-Henric Svanberg 23rd March 2011
Slide 3: Gulf of Mexico Committee
Gulf of Mexico Committee Ian Davis 23rd March 2011
Slide 4: Formation of Gulf of Mexico Committee
Formation of Gulf of Mexico Committee • Committee formed in recognition of the scale of the long-term response and to oversee the activities of BP’s Gulf Coast Restoration Organisation (GCRO) − Enables board to devote attention to oversight and strategic direction of group as a whole • The work of t
Slide 5: Gulf of Mexico Committee: Members and attendees
Gulf of Mexico Committee: Members and attendees Committee membership: • Ian Davis (Chair) # • Paul Anderson § ‡ • Sir William Castell § • George David # ‡ # Also Audit Committee member § Also SEEAC member ‡ US-based Standing meeting attendees: • Lamar McKay, President of the GCRO • Jack Lynch, Gener
Slide 6: Areas of focus
Areas of focus • Legal − Includes all government, civil and criminal investigations, the multi district litigation, and the Natural Resources Damages Assessment process • Claims − Individuals and businesses (since late August administered by the GCCF); and government entities (administered by BP) •
Slide 7: Safety, ethics and environment assurance committee
Safety, ethics and environment assurance committee Sir William Castell 23rd March 2011
Slide 8: SEEAC: Membership and attendees
SEEAC: Membership and attendees Members: • Sir William Castell (Chair): Chairman of Wellcome Trust and director of General Electric • Paul Anderson: non-executive director of BAE Systems Ltd and formerly chief executive of BHP Billiton and Duke Energy • Frank “Skip” Bowman: former head of the nuclea
Slide 9: Areas of focus for SEEAC in 2010
Areas of focus for SEEAC in 2010 • Safety and operations − Safety and operational risk function − Executive oversight (GORC) • Gulf of Mexico − BP Investigation Report • Independent Expert − Continued assessment of progress against Baker Panel recommendations • Texas City − OSHA citations − Committe
Slide 10: 2011 Plans and Priorities
2011 Plans and Priorities • Gulf of Mexico − Monitoring implementation of Bly Report recommendations • Safety & Operational Risk − Development and structure of S&OR − Clarity of accountabilities − Embedding OMS and group standards • Enhanced leading and lagging indicators of safety performance • Env
Slide 11: Audit committee
Audit committee Douglas Flint 23rd March 2011
Slide 12: Audit Committee: Membership and attendees
Audit Committee: Membership and attendees Members: • Douglas Flint (Chair): Chairman (and formerly Finance Director) HSBC • George David: Formerly Chief Executive and Chairman of UTC • Ian Davis: Formerly Chairman and Managing Director of McKinsey • Brendan Nelson: Formerly Global Chairman banking a
Slide 13: Areas of focus for the Audit Committee in 2010
Areas of focus for the Audit Committee in 2010 • Gulf of Mexico incident − Reporting and accounting: including provisioning methodology − Internal controls: initial response and in GCRO • Business controls and risk − US fuels value chain − TNK-BP − Trading − Procurement • Executive oversight of BP’s
Slide 14: 2011 Plans and Priorities
2011 Plans and Priorities • Financial risk assessment − Including work programme of internal audit function • Debt and liquidity management • Controls in new environments − Upstream re-organisation − JVs and acquisitions/disposals • Audit Committee changes − New Chair from April: Brendan Nelson − Ph
Slide 15: Remuneration committee
Remuneration committee Dr DeAnne Julius 23rd March 2011
Slide 16: Remuneration Committee: Members and attendees
Remuneration Committee: Members and attendees Members: • Dr DeAnne Julius (Chair): Chairman of the Royal Institute of International Affairs and previously a member of the Bank of England Monetary Policy Committee • Antony Burgmans § : formerly chairman of Unilever • George David # : Formerly Chief E
Slide 17: 2010 Pay Decisions Dominated by Deepwater Horizon Incident
2010 Pay Decisions Dominated by Deepwater Horizon Incident • Salaries frozen during 2010 − Except for promotion of Bob Dudley to CEO − Last increase for others in July 2008 • Annual bonuses eliminated or greatly curtailed − No bonus for Dudley, Hayward or Inglis − Bonus for Conn and Grote limited to
Slide 18: 2011 Remuneration Policy
2011 Remuneration Policy • Policy approved by shareholders in 2010 remains intact − Salary increases for Conn and Grote − Annual bonus – 150% of salary at target and 225% maximum − Deferred bonus – 1/3rd mandatory deferral, additional 1/3rd voluntary deferral, both matched 1-for-1, vesting after 3 y
Slide 19: 2011 Work Programme
2011 Work Programme • RemCo remit expanded to include more active role on pay policy and practice below Board − Major review underway (with the Group Chief Executive) − Single policy approach for all leadership team (top 600) − Focus on long-term sustainable value creation • Antony Burgmans takes ov
Slide 20: Nomination and chairman's committees
Nomination and chairman’s committees Carl-Henric Svanberg 23rd March 2011
Slide 21: Focus of the Nomination Committee in 2010
Focus of the Nomination Committee in 2010 • Rapid Board evolution − Executive and Non-Executive • Chief Executive succession • Ensure appropriate Board skills 21
Slide 22: Focus of the Chairman's Committee in 2010
Focus of the Chairman’s Committee in 2010 • Forum for NED discussion • Support for company’s response to Gulf of Mexico • Succession and performance of group chief executive • Succession planning within the group • Working with Nomination Committee on Board skills and experience 22
Slide 23: 2011 Plans and Priorities
2011 Plans and Priorities Nomination Committee • Return to normal rhythm of Board evolution • Focus on diversity within membership • Committee composition Chairman’s Committee • Monitoring and support for the new Group Chief Executive • Capability and succession planning for senior management • Cont