LONDON - BP is blocking bonuses to executives who were responsible for operations in the Gulf of Mexico during last year's disastrous well blowout, including former CEO Tony Hayward and the former head of exploration and production, Andy Inglis.
The British oil company's annual report also revealed Thursday that new CEO Bob Dudley decided to forgo his 2010 bonus but two other directors will receive payouts linked to their performance in separate divisions.
BP PLC said the board's remuneration decisions for 2010 were dominated by the scale and impact of the Gulf spill, which began with the April 20 explosion on the Deepwater Horizon rig that killed 11 workers and led to the worst oil spill in U.S. history.
"In the judgment of the committee and the group chief executive, this overrode the normal metrics for bonus outcomes," the report said.
BP is still dealing with the fallout of the explosion, which caused more than 200 million barrels of oil to gush from the busted rig before it was capped in mid-July. The London-based company faces massive fines in the United States and a raft of compensation cases.
Dudley, who said it was a "painful year," was the only executive director to receive a salary increase - taking his base earnings to $1.18 million from $750,000 on his promotion to CEO in October. He will receive no pay increase this year, the company added, but is eligible for shares currently worth 2.8 million pounds ($4.6 million) based on the company's performance over the next couple of years.
One of Dudley's first steps as CEO was to declare that incentive payments at the company would in the future be linked to safety performance.
Mississippi shrimper James A. Miller, who estimates he lost up to $70,000 in revenue due to the oil spill, said the BP executives should be held accountable for the "poor decisions they've made."
"Taking money from them is the least they could do," Miller said.
Anthony Kennon, mayor of Orange Beach, Ala., whose community was hard hit by the oil spill, said he was not surprised by the BP decision on bonuses.
"Commonsense would dictate that bonuses are predicated on performance and the oil spill in the Gulf is indicative of poor performance to me," Kennon said.
The head of BP's refining, Iain Conn, and BP Chief Financial Officer Bryan Grote did receive bonuses of 310,500 pounds ($505,000) and $621,000 respectively - one-third paid in cash - after they met or exceeded targets in their divisions.
"While the tragedy of lost lives and environmental damage remains foremost in everyone's minds, the committee also wished to fairly acknowledge the good business results in many parts of BP, delivered in the most testing of times," the company said.
The pair did not receive potential bonuses linked to their performance under the overall group, which left their payouts at 30 percent of their full possible amount.
Both will receive salary increases this year. Conn's new salary will rise to 730,000 pounds ($1.19 million) from 690,000 pounds and Grote's will rise to $1.44 million from $1.38 million.
Hayward, who left BP after a series of public gaffes over the handling of the oil spill, will receive almost $150,000 a year as a non-executive at BP's Russian joint venture TNK-BP.
Hayward left the BP board in October with a 1.1 million pound salary, which was doubled as a termination fee. Hayward also received 30,000 pounds compensation under British employment law and remains entitled to potential performance shares currently worth around 1.5 million pounds.
--- Harry R. Weber in New Orleans contributed to this report.
(Copyright 2011 by The Associated Press. All Rights Reserved.)