Former BP CEO facing £32m loss due to 'severe misconduct'

Former BP CEO Bernard Looney will lose out on up to £32.4m after it was discovered that he engaged in "serious misconduct" by not disclosing relationships with colleagues. As a result, Looney will be dismissed without notice and will not receive any additional salary or benefits from the company. Looney had previously resigned in September after admitting that he had not been fully transparent about his personal relationships in the past. It has been revealed that the BP board felt "knowingly misled" by Looney, who provided inaccurate and incomplete information during an investigation into these relationships in 2022. As a result of his dismissal, Looney will not receive his annual bonus, share awards amounting to nearly £25m, pension allowance, or any other benefits. The majority of his £32.4m package was represented by these share awards and the annual bonus for 2023. The board also decided to halt any further payments and bonuses. The review of Looney's relationships with colleagues was prompted by an anonymous tip-off received by BP in 2022. At that time, BP stated that Looney disclosed a few historical relationships with colleagues before becoming CEO, and no breach of company conduct was found. Looney had given assurances about disclosing these relationships and his future conduct. However, in September, the board received similar allegations, leading to a fresh review. Looney had a long-standing career at BP, starting as a drilling engineer in 1991 and eventually becoming a member of the executive team in 2010. He took over as CEO from Bob Dudley after serving as head of oil and gas production. Looney aimed to present himself as approachable and posted pictures of smiling employees on Instagram when he assumed the role in 2020. Initially, he set ambitious targets to reduce net carbon emissions by 2050 but faced criticism from environmental groups for diluting the target. Looney's tenure as CEO coincided with challenging times for the company, including the sharp decline in the demand for oil and gas due to pandemic-related lockdowns. During his time as CEO, BP also announced plans to cut 10,000 jobs in response to the pandemic. Additionally, the start of the conflict in Ukraine caused energy prices to surge, leading BP to exit Russia under pressure from the UK government. Looney's departure from BP follows a series of high-profile executive dismissals in the UK, shedding light on personal behavior among executives. Tony Danker, head of the CBI (Confederation of British Industry), was fired in April due to workplace behavior complaints. Similarly, Crispin Odey, founder of a hedge fund, stepped down in June amid allegations of sexual harassment made by 13 women. Odey has denied these claims. Murray Auchincloss, BP's Chief Financial Officer, has been acting as interim CEO during the investigation into Looney's conduct and the search for a successor. Auchincloss has stated that the company's strategy remains unchanged despite Looney's exit. Looney was contacted for comment but has not responded.