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Last Updated: Tuesday, 6 March 2007, 10:05 GMT
BP chief Lord Browne's pay falls
BP chief executive Lord Browne
A drop in the value of BP's shares led to much of the fall in pay
BP chief executive Lord Browne's pay packet has shrunk for the second year in a row, the oil giant has said.

Lord Browne's total pay package fell to 4.57m ($8.79m) down 28% from 2005, as BP suffered problems including oil spills and safety fears.

The pay cut contrasts with an increase of 15% in the company's full-year profits, to $22.3bn.

The news came as BP said it, and its partners, plan to invest $2bn to build a pipeline off Vietnam's south coast.

BP declined to reveal the names of its partners in the project, but did say the pipeline would deliver gas to power plants onshore from two new gas fields.

The company currently operates Vietnam's only operational pipeline, which supplies 13.2 million cubic metres of gas a day.

Details of Lord Browne's pay settlement were revealed in the oil giant's annual review.

Operational woes

According to the report, Mr Brown's salary and bonus payments came in at 2.5m, down from 3.3m last year.

The value of shares awarded to Lord Browne under an incentive scheme also fell to 2m from 3.1m in 2005.

It was the second year that the chief's pay has fallen, following problems in 2005.

That year an explosion at the company's Texas City refinery killed 15 people and injured 180, as well as causing huge damage.

In January, an independent US report into the blast found that while BP emphasised personal safety, it was weak on process safety.

The firm has also faced criticism for leaks last year at its Alaskan operations, delays on starting up some key projects also affected BP's performance, eroding Lord Browne's wages as a result of a drop in share prices.

BP shares have fallen 10.87% over the past year.

News of Lord Browne's pay deal come months ahead of his early departure from the company.

Lord Browne will step down from his post in July - after 12 years at the helm of BP - and be succeeded by Tony Hayward, who is currently head of exploration and production at BP.




SEE ALSO
BP buys Chevron's Dutch operation
05 Mar 07 |  Business
Higher safety costs hit BP profit
06 Feb 07 |  Business
Refinery-blast report savages BP
16 Jan 07 |  Business
BP's Browne to stand down in July
12 Jan 07 |  Business
BP manager criticises leadership
18 Dec 06 |  Business
Profile: Lord Browne
12 Jan 07 |  Business

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